any in terms of achieving increases in 5-52 Summary Problem-Four-Variance Breakdown of the Total Overhead Variance; Journal Entries ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below: Standard number of machine hours per unit produced Standard variable overhead rate per machine hour Budgeted fixed overhead (for the year) Practical capacity, in units (annual basis) Budgeted output for the coming year, in units Normal capacity, in units (per year) Actual production for the year (in units) Actual overhead costs incurred during the year. Fixed overhead Variable overhead Actual number of machine hours per unit for work done this period quired 0.5 $30.00 $300,000 10,000 8,000 9,000 9,200 $288,000 $142,600 0.49 Calculate the fixed overhead application rate per machine hour (rounded to 2 decimal places) using (a) budgeted output, (b) normal capacity, and (c) practical capacity. What is the total overhead application rate per machine hour (rounded to 2 decimal places) for each of the three choices identified in requirement 1? What is the total overhead variance for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? [Round answers to nearest whole number, and indicate whether each variance is favorable (F) or unfavorable (U).] What is causing the results you observe in requirement 3? What is the Overhead Efficiency Variance (= Variable Overhead Efficiency Variance) for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? [Round answers to near- est whole number, and indicate whether each variance is favorable (F) or unfavorable (U).] Provide an interpretation of the results reported in requirement 5. What is the total Overhead Spending Variance for the year under each of the following assumptions regarding the denominator activity level used to set the overhead application rate for the year: (a) bud- geted output, (b) normal capacity, and (c) practical capacity? Round answers to nearest whole dollar, and state whether each variance is favorable (F) or unfavorable (U). Break down the Total Overhead Spending Variance (as determined in requirement 7) into: (a) a Fixed Overhead Spending Variance, and (b) a Variable Overhead Spending Variance. Round answers t nearest whole dollar, and state whether each variance is favorable (F) or unfavorable (U). Provide an interpretation of the results reported in requirements 7 and 8.