The standard cost card for the single product manufactured by Cutter, Incorporated, is given below:

Inputs $(1)$ Standard Quantity or Hours $(2)$ Standard Price or Rate Standard Cost $(1)\backslash$times $(2)$

Direct materials $4\mathrm{.}2$ yards $ $5\mathrm{.}00$ per yard $ $21\mathrm{.}00$

Direct labor $0\mathrm{.}8$ hours $ $15\mathrm{.}00$ per hour $12\mathrm{.}00$

Variable overhead $0\mathrm{.}8$ hours $ $1\mathrm{.}50$ per hour $1\mathrm{.}20$

Fixed overhead $0\mathrm{.}8$ hours $ $5\mathrm{.}00$ per hour $4\mathrm{.}00$

Total standard cost per unit $ $38\mathrm{.}20$

Manufacturing overhead is applied to production based on standard direct labor$-$hours. During the year, the company worked $8,760$ hours and manufactured $10,700$ units. Selected data relating to the company$$s fixed manufacturing overhead cost for the year are shown below:

Actual Fixed Overhead $=$ $$42,000$

Budgeted Fixed Overhead $=?$question mark

Fixed Overhead Applied to Work in Process $=?$question mark hours $\backslash$times $$?$question mark per hour $=$ $$?$

Budget variance $=$ $$?$

Volume variance $=$ $$1,800$ FRequired:

What were the standard hours allowed for the year's production?

What was the amount of budgeted fixed overhead cost?

What was the fixed overhead budget variance?

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero

variance$).$ Input all amounts as positive values.

What denominator activity level did the company use in setting the predetermined overhead rate?