CRAZY Co, is a major producer of beauty products. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. The company has a standard of 10 labor hours per unit. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 17,500 labor-hours (the denominator activity level): Variable manufacturing overhead cost . . . . . $175,000 Fixed manufacturing overhead cost. $420,000 Total manufacturing overhead cost. $595,000 I During the most recent year, the following operating results were recorded: Activity: Actual Production... 1,600 Total Actual labor-hours worked. 15,000 Cost: Actual variable manufacturing overhead cost incurred ..... $156,000 Actual fixed manufacturing overhead cost incurred. $418,800 . Required: 1. Calculate the standard fixed manufacturing overhead rate and variable manufacturing overhead rate. 2. Compute spending and efficiency variances for variable overhead. 3. Compute the spending variance and production-volume variance for fixed overhead. 4. Prepare journal entries for variable and fixed manufacturing overhead costs and variances: write off these variances to cost of goods sold