The standard cost card for the single product manufactured by Princess Company is given below: Standard Cost Card-Per Unit Direct materials, 2.1 metres at $6 per metre Direct labour, 0.5 direct labour-hours at $25 per direct labour-hour Variable overhead, 0.5 direct labour-hours at $4 per direct labour-hour Fixed overhead, 0.5 direct labour-hours at $8 per direct labour-hour Total standard cost per unit $12.60 12.50 2.00 4.00 $31.10 Last year, the company produced 6,800 units of product and worked 5,225 actual direct labour-hours. Manufacturing overhead cost is applied to production on the basis of direct labour-hours. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead Cost $27,310 Budgeted Fixed Overhead Cost Fixed Overhead Cost Applied to Work in Process ? hours * $8 per hour = $? Budget variance, $? Volume variance, $400 F Required: 1. What were the standard hours allowed for the year's production? Standard hours DLHs 2. What was the amount of budgeted fixed overhead cost for the year? Fixed overhead cost 3. What was the budget variance for the year? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Budget variance 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year? Denominator activity DLHs