Manufacturing overhead was applied on the basis of direct labor hours. Normal ca

Manufacturing overhead was applied on the basis of direct labor hours. Normal capacity for the month was 3400 direct labor hours. At normal capacity budgeted overhead costs were $20 per labor hour variable and $10 per labor hour fixed. Total budgeted fixed overhead costs were $34000.Jobs finished during the month were sold for $280000. Selling and administrative expenses were $25000.Instructions(a) Compute all of the variances for (1) direct materials and (2) direct labor.(b) Compute the total overhead variance.(c) Prepare an income statement for management. Ignore incometaxes.