Exercise #3 Paradis Ltd adopts a standard costing system. The standard cost card for their product is as follows: The annual budgeted manufacturing overhead totals $6,600,000, of which 963.600.000 is variable. The company allocates overhead costs based on machine hours and calculates separate rates for variable and fixed overheads. The normal annual level of machine hours is 600000 hours. The planned production for each month is 25,000 units. Paradis Ltd produced 26.000 units this month and used 53,500 machine hours. Actual manufacturing overhead for the month was $320,000 variable and 3260000 xed. The total manufacturing overhead applied during the month 1aras $ETE=000 Required: {a} Calculate the variable overhead and fixed overhead variances: indicating whether each variance is favourable or unfavourable