Question 12 (4 points) A company has a standard costing system that applies overhead using machine hours. Each item produced requires 2.5 hours of machine time and the budgeted level of activity is 1,000 machine hours. The predetermined overhead rate for fixed overhead is $6.50 per machine hour. The flexible budget for manufacturing overhead is as follows: Machine Hours: Per MH 1,000 1,500 2,000 Variable overhead costs $ 2.65 $ 2,650 $ 3,975 $ 5,300 Fixed overhead cost 6,500 6,500 6,500 Total overhead costs $ 9,150 $ 10,475 $ 11,800 The most recent year had the following results: Actual number of units produced 450 Actual machine hours worked 1, 170 Actual variable overhead costs $3, 150 Actual fixed overhead costs $6,550 Required: Calculate the following: Blank #1: Fixed overhead budget variance (1 mark) Blank #2: Is the fixed overhead budget variance favourable or unfavourable? (enter For U in the blank) (1 mark) Blank #3: Fixed overhead volume variance (1 mark) Blank #4: Is the fixed overhead volume variance favourable or unfavourable? (enter For U in the blank) (1 mark)