Problem 3: Fixed Overhead Cost Variances (22 points): Brookster Inc. used a standard costing system for its production process. Fixed overhead is allocated based on machine hours. Budgeted fixed overhead for the month was $16,910 for budgeted capacity of 8,900 machine hours. Actual fixed overhead was $17,500 for 1,800 units of output. The standard time allowed was 5 machine hours per unit of output. The fixed overhead allocated for actual output is $17,100. Required: (a) Compute the Fixed Overhead Spending Variance. Be sure to label your variance as favorable (F) or unfavorable (U). (5 points) Fixed Overhead Spending Variance = Actual Cost Incurred - Flexible Budget Amount (b) Compute the Fixed Overhead Production-Volume Variance. Be sure to label your variance as favorable (F) or unfavorable (U) (5 points). Production Volume Variance = Budgeted Fixed Overhead - Fixed Overhead Allocated for Actual Output (c) Is Fixed Manufacturing Overhead under or over allocated (1 points)? (d) By how much (1 points)? (e) Prepare the journal entry to record the actual fixed overhead (assume all costs went to Accounts Payable (2 points) (1) Prepare the journal entry to record the allocated fixed overhead (2 points) (g) Prepare the journal entry to record the fixed overhead variances and to close the Fixed Overhead Control account (4 points)