8-35 Activity-based costing, batch-level variance analysis. Audrinas Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping department costs for 2014. Static-Budget Amounts Actual Results Pairs of shoes shipped 225,000 180,000 Average number of pairs of shoes per crate 15 10 Packing hours per crate 0.9 hours 1.1 hour Variable direct cost per hour $18 $16 Fixed overhead cost $54,000 $56,500 1. What is the static budget number of crates for 2014? 2. What is the flexible budget number of crates for 2014? 3. What is the actual number of crates shipped in 2014? 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate? 5. For variable direct batch-level costs, compute the price and efficiency variances. 6. For fixed overhead costs, compute the spending and the production-volume variances