Wattis Manufacturing has established the following master flexible budget: Production in Units 150,000 200,000 100,000 Variable expenses: Raw materials Direct labour Manufacturing overhead Selling and administrative Total variable expenses $220,000 330000 440,000 240,000 360,000 480,000 180,000 270,000 360,000 100,000 150,000 200,000 $740,000 1,4110,000 $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 1,697,500 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? b) Actual data for the year were as follows: Actual variable manufacturing overhead Actual fixed manufacturing overhead co 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