ll [1O Marks] Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of machine hours. The company's condensed exible budget for manufacturing overhead is given below: Per Machine Hour Machine Hours 30,000 $90,000 300,000 $390,000 300.000 300.000 $360,000 $375,000 The denominator level of activity is 30,000 machine hours. Standards call for 2.5 machine hours per unit of output. Actual activity and manufacturing overhead costs for the year are given below: Variable overhead costs Fixed overhead costs Total overhead costs Units produced 12,800 units Machine hours used 31,600 machine hours Overhead costs incurred: Variable costs $96,000 Fixed costs $297,000 Required: (YOU MUST SHOW ALL OF YOUR WORK FOR FULL MARKS) a) What are the standard hours allowed for the output? b) What was the variable overhead spending variance? Is it favourable or unfavourable? c) What was the variable overhead efciency variance? Is it favourable or unfavourable? d) What was the fixed overhead budget variance? Is it favourable or unfavourable? e) What was the fixed overhead volume variance? Is it favourable or unfavourable? f) In a standard costing system, if factory overhead in total is underapplied, then the overhead variances will be unfavourable. Is this correct? Why or why not? Answer in no more than three sentences