Svenson Technology considers direct labor cost too insignificant to separately account for and, therefore, uses a $22.50 per machine hour predetermined conversion cos rate (of which $16 is related to fixed overhead costs). The conversion rate was established based on expected capacity of 2,420,640 machine hours. One of Svenson Technology's products requires 4.1 machine hours to manufacture. In September, the company manufactured 50,400 units of product and used 199,200 machine hours and 2016 direct labor hours. Variable and fixed conversion costs incurred for September were $1,322,952 and $3,192,000, respectively. a. What is the expected capacity per month in units and machine hours? Expected capacity in units 590,400 x Expected capacity in MHs 0 x b. Prepare a four-variance analysis of conversion costs for September. Note: Do not use negative signs with your answers. Fixed Conv. Spending Variance Actual Fixed Conv. Budgeted Fixed Conv. = Spending Variance $ 3,192,000 3,187,200 x = $ 4,800 X U Fixed Conv. Volume Variance Budgeted Fixed Conv. Applied Fixed Conv. Volume Variance $ 3,187,200 X - $ 3,306,240 = $ 119,040 XF Variable Conv. Spending Variance Actual Var. Conv. Budgeted Var. Conv. = Spending Variance $ 1,322,952 1,294,800 = $ 28,152 U Variable Conv. Efficiency Variance Budgeted Var. Conv. Applied Var. Conv. = Efficiency Variance $ 1,294,800 $ 1,343,160 = $ 48,360 F C. Prepare a three-variance analysis of conversion costs for September. Note: Do not use negative signs with your answers. OH Spending Variance Actual Conv. Budgeted Conv. At Actual = Spending Variance $ 4,514,952 4,482,000 * = $ 32,952 x U OH Efficiency Variance Budgeted Conv. at Actual Budgeted Conv. at Std. = Efficiency Variance 4,482,000 x 4,649,400 x = 167,400 XF $ $ Budgeted Conv. at Std. $ 4,649,400 x Volume Variance Applied Conv. = Volume Variance $ 4,482,000 x = $ 167,400 X U X