Watson Foods processes bags of organic frozen vegetables sold at specialty grocery stores. The company The company actually processed 156,000 cases of frozen organic vegetables during the year and incurred $682,070 of manufacturing overhead. Of this amount, $634,000 was fixed. The company also incurred a total allocates manufacturing overhead based on direct labor hours. Watson has budgeted fixed manufacturing overhead for the year to be $632,000. The predetermined fixed manufacturing overhead rate is $16.40 per of 41.800 direct labor hours. direct labor hour, while the standard variable manufacturing overhead rate is S1.00 per direct labor hour. The Read the reguirements direct labor standard for each case is one-quarter (0.25) of an hour Requirement 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The variable averhead allocated to production is S Now determine the fixed overhead allocated to production. The fixed overhead allocated to production is S Requirement 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? Begin by determing the formula for the variable MO rate variance, then calculate the variable overhead rate variance. (Enter the result as a positive number. Enter rates to two decimal places. Label the variance as favorable F) or unfavorable (U Variable overhead rate variance This variance tells managers that Watson Foods actually incurred Y on variable manufacturing overhead than they would have expected given the actual hours used Now determine the formula for the variable MoH efficiency variance, then calculate the efficiency variance. (Enter the result as a positive number. Enter any rates to two decimal places. Label the variance as favorable (F) or unfavorable (U).) Variable overhead efficiency variance This variance tells managers that Watson Foods used direct labor hours than anticipated for the actual volume of output