3. Overhead Variance Analysis (40 points) Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable and fixed manufacturing overhead. The following information relates to the company's manufacturing overhead data: Budgeted output units 50,000 units Budgeted machine-hours 125,000 hours Budgeted total variable manufacturing overhead costs $1,000,000 Budgeted fixed overhead $750,000 Actual output units produced 43,000 units Actual machine-hours used 129,000 hours Actual variable manufacturing overhead costs $828,000 Actual fixed overhead $792,000 a. Calculate the variable overhead spending and efficiency variances. b. Calculate the fixed overhead spending and volume variances. C. Make journal entries for the actual costs incurred and overhead applied to WIP. d. Make journal entries to record the variable and fixed overhead variances for August. Close the variance accounts to cost of goods sold. e. Was variable overhead over or under applied? Was fixed overhead under or over applied? How do you know? f. Provide potential explanations for the variable overhead spending and efficiency variances and fixed overhead spending and volume variances