2. (H) New President of JOYTECH is examining the June 2021 results for the Machine Learning Division. New president's current concern is with manufacturing overhead costs of this division. This division makes memory parts of the computer. Both variable and fixed overhead costs are allocated to the memory parts on the basis of machine running hours. The following budget information is available. Budgeted variable overhead rate Budgeted fixed overhead rate Budgeted machine hours per memory part Budgeted production and sales for June 2021 Budgeted fixed overhead costs for June 2021 Actual results for June 2021 are as follows: Memory parts produced and sold Machine hours used Variable overhead costs Fixed overhead costs $200 per hour $240 per hour 1.5 hrs 5,000 memory parts $1,800,000 4,800 units 8,400 hrs $1,478,400 $1,832,000 Instructions) (a) Compute the spending variance and the efficiency variance for variable overhead. (b) Compute the spending variance and the volume variance for fixed overhead. (c) Let's assume sales $2,000,000, cost of goods sold at standard $1,000,000, operating expenses are 500,000. (d) Make Income Statement which reflects variances from standard cost. Journalize the entries for recording the overhead variances