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Electrical Supply Co. (ESC) manufactures electric switchboards. ESC allocates manufacturing overhead based on machine hours. ESCs results for the most recent year are as follows:

Electrical Supply Co. (ESC) manufactures electric switchboards. ESC allocates manufacturing overhead based on machine hours. ESCs results for the most recent year are as follows: Actual fixed overhead expense $ 100,000 Actual variable overhead expense $ 140,000 Actual machine hours 60,000 Actual # of units produced 50,000 Budget machine hours 55,000 Budget # of units produced 44,000 Budgeted fixed overhead expense $ 110,000 Budgeted variable overhead expense $ 165,000 a. Compute a three-column variance analysis of ESCs variable manufacturing overhead for the results reported above. Include all appropriate variance descriptions. b. Compute a three-column variance analysis of ESCs fixed manufacturing overhead for the results reported above. Include all appropriate variance descriptions. c. Based on your analysis above, what relationship about the Production Volume Variance and ESCs capacity would you discuss with management?

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