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2 . Atlantic Company has the following monthly flexible budgetinformation based on an expectation of operating at 80% of thefactory’s capacity or 10,000 units produced:Operating Levels70%80%90%Budgeted output in units8,00010,00012,000Budgeted labor (standard hours)16,00020,00024,000Budgeted overheadVariable overhead$ 48,000$60,000$ 72,000Fixed overhead40,00040,00040,000Total overhead$ 88,000$100,000$112,000During the current month, the company operated at 70% ofcapacity and employees worked 16,500 hours and the flowing actualoverhead costs were incurred:Variable overhead$ 47,300Fixed overhead41,000Total overhead$88,300Required:Compute the predetermined overhead rate per direct labor hourfor variable overhead, fixed overhead, and total overhead.Compute the variable overhead spending and efficiencyvariances.Compute the fixed overhead spending and volume variance