Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials 80,000 $152,000 Directlabour 160,000 Manufacturing overhead 120,000 Total variable expenses $432,000 Fixed expenses: Manufacturing overhead $300,000 Sellingand administrative 191,000 Total fixed expenses $491,000 Total expenses $923,000 100,000 120,000 190,000 228,000 200,000 240,000 150,000 180,000 $540,000 $648,000 $300,000 $300,000 191,000 191,000 $491,000 $491,000 $1,031,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? b) Actual data for the year were as follows: Actual variable manufacturing overhead cost $159,500 Actual fixed manufacturing overhead cost $306,000 Actual machine hours incurred 110,000 Units produced 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.