Custom Granite, Inc. uses an absorption cost system for accumulating product cost. The following date are available for that past year: Raw materials purchases totaled $240,000 Direct labor costs incurred for the year totaled $480,000 Variable manufacturing overhead is applied on the basis of $6 per direct labor hour. Fixed manufacturing overhead is applied on the basis of machine hours used. When plans for the year were being made, it was estimated that total fixed costs would be $312,000 and that 96,000 machine hours would be used during the year. The direct labor rate is $16 per hour. Actual machine hours used during the year totaled 88,000 hours Actual general and administrative expenses for the year totaled $320,000 Inventory balances at the beginning and end of the year were as follows. Raw materials - beginning of year, $39,000 Raw materials - end of year, $27,000 Work in process - beginning of year, $33,000 Work in process - end of year, $51,500 Finished goods - beginning of year $104,000 Finished goods - end of year $122,000 A. Calculate the predetermined fixed manufacturing overhead rate and explain how it will be used during the year. B. Calculate the variable manufacturing overhead applied to work in process. Could the applied amount of variable overhead differ from the actual amount of variable overhead incurred by Custom Granite, Inc., for the year? If so, why might this occur? C. Calculate the fixed manufacturing overhead applied to work in process. Could the applied amount of fixed overhead differ from the actual amount of fixed overhead incurred by Custom Granite, Inc., for the year? Why or why not?