Compute all 4 overhead variances. Prepare absorption and variable income statements. [Hint: First compute your overhead rates per hour, standard quantity allowed, and the per unit cost for variable and absorption costing] Given: Selling price per unit: $40.00 Units sold: 79,500 Variable manufacturing costs per unit: Direct materials $7.00 Direct labour 9.00 Variable overhead 4.00 Standard: Normally make 8 units per hour. Normal annual volume: 10,000 hours Expected annual volume: 9,000 hours. Budgeted Fixed manufacturing overhead of $400,000 was based on Normal annual volume, the same as last year. Actual variable manufacturing overhead of $315,000 and actual fixed manufacturing overhead of $402,000 was incurred over 9,400 hours in the production of 75,000 units. Beginning inventory: 10,000 units Ending inventory: 5,500 units. Selling and admin: Fixed $350,000 Variable ($2 per unit sold)