Medicine Hat Industries gathered the following information for the month ended July 31: The static budget volume is 10,000 units of production per month. Overhead is allocated based on machine hours. Total budgeted fixed overhead is $50,000. Standard machine hours per unit: 2 hours per unit produced Actual production: 12,000 units Standard fixed overhead rate: This rate can be calculated based on the information provided. Standard variable overhead rate: $1.80 per machine hour/labour hour (Note: 1 labour hour uses 1 machine hour) Actual fixed overhead cost: $45,000 Actual variable overhead cost: $31,500 Actual machine hours: 21,000 hours. Required: 1. What is the budgeted fixed overhead rate per machine hour? 2. What is fixed overhead budget variance and production volume variance? Indicate whether they are favorable or unfavorable. 3. What is variable overhead spending/rate and efficiency variances? Indicate whether they are favorable or unfavorable.