Question 7 (13 points): Bolt Industries gathered the following information for the month ended March 31: The static budget volume is 9,000 units. Standard machine hour is 1.5 hours per unit. The number of units, corresponding total standard machine hours and corresponding total budgeted variable overhead costs are as follows: Number of units Standard machine hours Budgeted variable overhead: $24,000 $27,000 8,000 9,000 10,000 12,000 13,500 15,000 (-1.5*8,000) (-1.5*9,000) (-1.5*10,000) $30,000 Overhead is allocated based on machine hours. Standard fixed overhead rate is $3 per machine hour. Actual production was 10,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours. The relevant range is between 6000 to 12,000 units. Required (Put your answers in the space of next page): 1. What is the budgeted fixed overhead cost? 2. What is variable overhead spending and efficiency variance? Indicate whether they are favorable or unfavorable. 3. What is fixed overhead budget variance and production volume variance? Indicate whether they are favorable or unfavorable.