$(15$ points$)$ The following information includes the most recent period$$s results for Okoye Co$.$

Okoye Co$.$ uses machine hours to allocate factory overhead.

Actual Budget

Variable Overhead Expense $ $255,000$ $ $198,000$

Fixed Overhead Expense $ $265,000$ $ $247,500$

# Units Produced $65,00044,000$

# Machine Hours $87,75066,000$

b$.$ Compute a three$-$column variance analysis of fixed manufacturing overhead for the results reported

above. Include all appropriate variance amounts and descriptions. Provide the amount and indicate

if Fixed Overhead is Over or Under allocated.

c$.$ Discuss a relevant insight about Okoye$$s capacity based on the Production Volume Variance results

of your analysis above. Discuss capacity, not variance amounts from above.