Problem 3 (10 points) Gordon Enterprises gathered the following information for the month of July: Overhead flexible budget: 5,000 Number of units 4,000 3,000 Standard machine hours 20,000 16,000 12,000 Budgeted overhead costs: $45,000 $36,000 Variable $27,000 $60,000 Fixed $51,000 $51,000 Gordon actually produced 4,000 units in 16,400 machine hours. Total actual overhead cost of $82,000 consisted of $33,000 variable costs and $49,000 fixed costs. The standard variable and fixed overhead rates are based on a master (static) budget of 3,000 units. SHOW CALCULATIONS a) Compute the total manufacturing overhead cost variance. Compute the overhead flexible budget variance. b) Compute the production volume variance. c)