Exercise 10A-5 Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Quantity or Hours 3 yards 6.00 per yard 4 hours 15.50 per hour 4 hours hours5.00 per hour Standard Price or Rate Standard Cost Inputs Direct materials Direct labor Variable overhead Fixed overhead $ 18 62 20 $ 106 rs 1.50 per hour Total standard cost per unit Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 37,000 hours and manufactured 9,500 units of product. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below Actual Fixed Overhead Fixed Overhead Applied to Work in Process Budgeted Fixed Overhead hours x $? per hour $198,70e Budget variance, Volume variance $10,000e U Required 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the fixed overhead budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year