he Milling Department uses standard machine hours to allocate overhead to products. Budgeted volume for the year was 36,000 machine hours. A flexible budget is used to set the overhead rate. Fixed overhead is budgeted to be $720,000 and variable overhead is estimated to be $10 per machine hour. During the year, two products are milled. The following table summarizes operations. Product 1 Product 2 Units milled 10,500 12,000 Standard machine per unit 2 1 Actual machine hours used 23,000 13,000 Actual overhead during the year was $1.1 million. Calculate all the relevant overhead variances for the department, and write a memo that describes what each one means