The Scottish rm of Cullen and MacNeil produces a single product and uses a standard costing system to help control costs. Manufacturing overhead is applied to production on the basis of standard machinehours. The Scottish currency is the British pound. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine hours (the denominator activity level chosen for the year): Variable manufacturing overhead cost 27,000 Fixed manufacturing overhead cost 54,000 Total manufacturing overhead cost 81,000 During the year, the following operating results were recorded: Actual machinehours worked 15,000 Standard machinehours allowed 16,000 Actual variable manufacturing overhead cost incurred 24,000 Actual fixed manufacturing overhead cost incurred 52,000 At the end ofthe year, the company's manufacturing overhead account contained the following data: Manufacturin Overhead Actual costs 76,000 Applied costs 72,000 4,000 Management would like to determine the cause of the 4,000 underapplied overhead. Required: 1. Compute the predetermined overhead rate for the year. Break it down into variable and fixed cost elements. (Round your answers 1. Compute the predetermined overhead rate for the year. Break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable rate Fixed rate 2. This part of the question is not part of your Connect assignment. 3. Analyze the 4,000 underapplied overhead figure in terms of the variable overhead spending and efciency variances and the xed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efciency variance Fixed overhead budget variance Fixed overhead volume variance Underapplied overhead