The standard cost card for the single product manufactured by Cutter, Inc., is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) (2) Standard Standard Quantity Price or Hours or Rate 5.0 yards $ 3.00 per yard 0.7 hours $18.00 per hour 8.7 hours $ 3.ee per hour 0.7 hours $ 5.80 per hour Standard Cost (1) x (2) $15.00 12.60 2.10 4.06 $33.76 Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 9.650 hours and manufactured 13,500 units of product. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process ? hours * $? per hour $54,800 Budget variance, S? Volume variance, $2,610 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the fixed overhead budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values.) 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year? 1. Standard hours allowed for the year's production 2. Budowed fred overhead cost 3. Budget variance