1.Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead? variances, using the? 4-variance analysis.

2.Prepare journal entries using the? 4-variance analysis.

3.Describe how individual fixed manufacturing overhead items are controlled from day to day.

4.Discuss possible causes of the fixed manufacturing overhead variances.

The

DelcarmenDelcarmen

Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto? part, based on a denominator level of

3 comma 6003,600

output units per? year, included

55

?machine-hours of variable manufacturing overhead at

$ 8$8

per hour and

55

?machine-hours of fixed manufacturing overhead at

$ 14$14

per hour. Actual output produced was

3 comma 9003,900

units. Variable manufacturing overhead incurred was

$ 265 comma 000$265,000.

Fixed manufacturing overhead incurred was

$ 380 comma 000$380,000.

Actual? machine-hours were

32 comma 00032,000.