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 3700 output units per year, included 5 machine-hours of variable manufacturing overhead at $ 8 per hour and 5 machine-hours of fixed manufacturing overhead at $ 16 per hour. Actual output produced was 4200 units. Variable manufacturing overhead incurred was $ 250000 . Fixed manufacturing overhead incurred was $ 380000 . Actual machine-hours were 30000.

1. Prepare an analysis of all variable manufactoring 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.

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