The manufacturing overhead budget at Levetron Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in August. The variable overhead rate is $8.80 per direct labor hour. The company's budgeted fixed manufacturing overhead is $136,510 per month, which includes depreciation of $25.110. All other foed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month The predetermined overhead rate for August should be: Multiple Choice $8.80. O $27.50. $24.06. O $18.70. Shawn Incorporated planned to produce 3,000 units of its single product, Megatron during November. The standard specifications for one unit of Megatron include six pounds of material at $0.30 per pound. Actual production in November was 3100 units of Megatron The accountant computed a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that: (CMA adapted) Multiple Choice more materials were purchased than were used more materials were used than were purchased mandard rost Multiple Choice more materials were purchased than were used. more materials were used than were purchased. the actual cost of materials was less than the standard cost. the actual usage of materials was less than the standard allowed.