Question 2 (11 points) The Tulip Company makes and sells a single product. Overhead costs are applied on the basis of machine hours. The denominator activity is 35,000 machine hours, and the budgeted fixed overhead costs are $122,500. The standard cost card shows the following: 1.5 direct labour hours are required per unit 2.5 machine hours are required per unit variable overhead rate is $2.00 per machine hour fixed overhead rate is $3.50 per machine hour. The company had the following actual operating results: Number of units produced Actual direct labour hours 14,200 22,100 Actual machine hours 36,520 Actual variable overhead costs $71,214 Actual fixed overhead costs $120,000 Required: 1. Calculate the variable overhead spending and efficiency variances. (5.5 marks) 2. Calculate the fixed overhead budget and volume variances. (5.5 marks) Label your variances (name and favourable or unfavourable). KX