Wattis Manufacturing has established the following master flexible budget: Production in Units 150,000 200,000 100,000 Variable expenses: Raw materials Direct labor Manufacturing overhead Selling and administrative Total variable expenses $220.000 240.000 180.000 100,000 $740,000 330.000 360,000 270,000 150,000 $1,110,000 440.000 480,000 360.000 200,000 $1,480,000 Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses $337,500 250,000 $587,500 $337,500 250,000 $587,500 $337,500 250,000 $587,500 Total expenses $1,327,500 $1,697,000 $2,067,500 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 150.000 units. What are the predetermined variable and fixed manufacturing overhead rates? (4 Marks) b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced $211,680 $343.000 126.000 120.000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year. (16 Marks)