The production manager at Equinox Plant., require A Three Way Variance Analysis for manufacturing overhead costs. These variances are computed each month. The information for the month of October 2016 are provided below. Prepare a Three Way Variance Analysis for manufacturing overhead costs for the following variances: spending (budget), efficiency, and production volume. Use the following information to answer questions 1 to 4.

Budgeted output units 5,000 units

Budgeted fixed manufacturing overhead $20,000

Budgeted variable manufacturing overhead $30,000

Variable manufacturing is applied on the basis of direct manufacturing labor hours

Budgeted direct manufacturing labor hours in total 10,000 hours

The denominator volume level is budgeted at 10,00 direct labor hours

Fixed manufacturing costs incurred $26,000

Direct manufacturing labor hours used 7,200

Variable manufacturing costs incurred $25,200

Actual units manufactured 3,200

Complete a 3-Way Variance Analysis for the production Manager?

1. Calculate the Manufacturing Overhead Rate per hour?

2. Calculate the Manufacturing Overhead Spending Variance?

3. Calculate the Manufacturing Overhead Efficiency Variance?

4. Calculate the Manufacturing Overhead Production Volume Variance?