Letsgo Trailer. Inc. has an automated production process, and production activity is quantified in terms of process hours. A standard-costing system is used. The annual static budget for 2017 called for 6,000 units to be produced. requiring 30.000 machine hours. The standard overhead rate for the year was computed using this planned level of production. The 2017 manufacturing cost report follows. Letsgo Trailer, Inc. Manufacturing Cost Report For 2017 (in thousands of dollars) Static Budget Flexible Budget 30,000 31,000 32.000 Actual Machine Machine Machine Cost Cost item Hours Hours Hours Direct Material $330.0 $341.0 $352.0 $353.0 Direct labor 50?.0 523.9 540.8 53?.0 Manufacturing overhead: Supplies 24.0 24.8 25.6 25.0 Maintenance 129.0 133.3 137.6 130.0 Supervision 30.0 82.0 34.0 31.0 Inspection 144.0 147.0 150.0 147.0 Insurance 50.0 50.0 50.0 50.0 Depreciation 200.0 200.0 200.0 200.0 Total cost $1,464.0 $1,502.0 $1 I40.Q 51,5230 Letsgo develops exible budgets for different levels of activity for use in evaluating performance. A total of 6.200 units was produced during 2017. requiring 32.000 machine hours. The preceding manufacturing cost report compares the company's actual cost for the year with the static budget and the flexible budget for two different activity levels. Required: Assume management has determined that the actual fixed overhead cost in 201? amounted to 3320.000. Compute the following amounts. For variances. indicate whether favorable or unfavorable where appropriate. Answers should be rounded to two decimal pieces when necessary. 1. The variable-overhead rate per machine hour in a flexible-budget formula. (Hint: Use the high-low method to estimate cost behavior.)