Problem 10A-9 Applying Overhead; Overhead Variances (L010-3, LO10-4] Chilczuk, S.A of Gdansk, Poland, is a major producer of classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 25.000 labor-hours (the denominator activity level): Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost $ 112,580 162,500 $ 275,000 During the most recent year, the following operating results were recorded: 22,000 23,000 Activity: Actual labor-hour's worked Standard labor-hours allowed for the actual output cost: Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred $ 129,800 $ 143,75 At the end of the year, the company's Manufacturing Overhead account contained the following data Actual Manufacturing Overhead 273,550 Applied 20,550 253,000 Management would like to determine the cause of the $20.550 underapplled overhead Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements 2. Show how the $253,000 Applied figure in the Manufacturing Overhead account was computed 3. Breakdown the $20,550 underapplied overhead into four components (Variable overhead rate variance (2) variable overhead efficiency variance (3) fixed overhead budget variance and (4) fixed overhead volume variance Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate, Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) per hour Predetermined overhead rate Variable element per hour Fixed element per hour HAR Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Show how the $253,000 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.) per hour Required 1 Required 3 > actual hours worked x standard hours allowed