PROBLEM $10$A$-9$ Applying Overhead; Overhead Variances LO$10-3,$ LO$10-4$

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 labor$-$hours. 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$)$:

$\backslash$table$[[$Variable manufacturing overhead cost,$$87,500$