Part VI (10 marks) Presented below is a flexible manufacturing budget for Bestwood Company, which manufactures fine dining chairs: ctivity Index Standard direct labour hours Variable costs 2,000 3,2003,6004,000 Indirect materials Indirect labour Utilities S 4,000$ 6,400 $ 7,200S 8,000 2,3003,6804,140 4,600 5,120 5.7606,400 9,50015,20017,10019,000 Total variable Fixed costs 1,000 3.0003,0003.000 3.000 4,000 $13,500 S19,200 $21,100 $23,000 Supervisory salaries Rent 1,0001,000 1,000 Total fixed 4,0004,000 4,000 Total costs The company applies total overhead on the basis of direct labour hours at $6.00 per direct labour hour and the standard hours per dining chair is 1/2 hour each. The company's actual production was 5,800 dining chairs with 3,000 actual hours of direct labour. Actual overhead was $18,200, of which $4,100 was fixed Required.: a) Calculate the variable overhead budget and fixed overhead variances