Drop down options:

Accounts Payable Control and Other Accounts

Fixed Manufacturing Overhead Allocated

Fixed Manufacturing Overhead Control

Fixed Manufacturing Overhead Efficiency Variance

Fixed Manufacturing Overhead Production-Volume Variance

Fixed manufacturing Overhead Spending Variance

Variable Manufacturing Overhead Allocated

Variable Manufacturing Overhead Control

Variable Manufacturing Overhead Efficiency Variance

Variable Manufacturing Overhead Production-Volume Variance

Variable manufacturing Overhead Spending Variance

Wages Payable Control, Accumulated Depreciation Control, etc.

Work-in-Process Control

The Ortiz 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 3,600 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 $13 per hour. Actual output produced was 4, 100 units. Variable manufacturing overhead incurred was $250,000. Fixed manufacturing overhead incurred was $390,000. Actual machine-hours were 28,000. 1. Prepare an analysis of all variable manufacturing 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 Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis. Begin by calculating the following amounts for the variable overhead. Actual Input Actual Costs Incurred Flexible Budget Allocated Overhead Budgeted Rate Variable OH Now complete the table below for the fixed manufacturing overhead. Same Budgeted Lump Sum Regardless of Output Level Actual Costs Incurred Flexible Budget Allocated Overhead Fixed OH Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists, leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Spending Variance Efficiency Variance Production-Volume Variance 4-Variance Analysis Variable OH Fixed OH Requirement 2. Prepare journal entries using the 4-variance analysis. Record the actual variable manufacturing overhead incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead allocated. Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead variances for the period. Journal Entry Date Accounts Debit Credit Record the actual fixed overhead costs incurred. Journal Entry Date Accounts Debit Credit Record the fixed overhead costs allocated. Journal Entry Date Accounts Debit Credit Record the fixed overhead variances for the period. Journal Entry Accounts Date Debit Credit