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 20.000 labor-hours (the denominator activity level) ook rint Variable manufacturing overhead cost Fixed manufacturing overhead cost 105,000 Total manufacturing overhead cost $170,000 $ 65,000 rences During the most recent year, the following operating results were recorded