PLEASE HELP ME

PROBLEM 10A-9 Applying Overhead; Overhead Variances LO10-3, LO10-4 Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct laborhours. According to the company's planning budget. the following manufacturing overhead costs should be incurred at an activity level of 35,000 labor-hours (the denominator activity level): During the most recent year, the following operating results were recorded: At the end of the year, the company's Manufacturing Overhead account contained the following data: Management would like to determine the cause of the $15,400 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $272,000 Applied figure in the Manufacturing Overhead account was computed. 3. Breakdown the $15,400 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. 4. Explain the meaning of each variance that you computed in (3) above. Problem 10A-9 1. Total rate: $ hours =$ per hour Variable rate: $ hours =$ per hour Fixed rate: $ hours =$ per hour 2. standard hours $ per hour =$ 3. Variable overhead variances: Fixed overhead variances: Underapplied overhead. 4.Variable overhead Rate variance: Efficiency variance: Fixed overhead Budget variance: Volume variance