10. (20 points) The following information includes the most recent period's results for Perez Co. Perez Co. uses machine hours to allocate factory overhead. Variable Overhead Expense Fixed Overhead Expense # Units Produced # Machine Hours Actual $ 265,000 $540,000 32,000 96,000 Budget $ 250,000 $ 500,000 40,000 100,000 a. Compute a three-column variance analysis of variable manufacturing overhead for the results reported above. Include all appropriate variance amounts and descriptions. 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 Perez's capacity based on the Production Volume Variance results of your analysis above