Question 2. (25 marks) Levie Company uses standard costing. The company prepared its static budget for 2018 at 2,500,000 machine-hours for the year. Total budgeted overhead cost is $31,250,000. The variable overhead rate is $11 per machine hour ($22 per unit). Actual results for 2018 follow: Machine-hours Output Variable overhead Fixed overhead rate variance 2,400,000 hours 1,245,000 units 25200000 $ 1.500.000 U Require d I 1. Calculate for the fixed overhead: a. Budgeted amount. b. Budgeted cost per machine-hour. c. Actual cost. d. Production-volume variance. 2. Calculate the variable overhead rate variance and the variable overhead efficiency variance