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 4,100 output units per year, included 5 machine-hours of variable manufacturing overhead at $9 per hour and 5 machine-hours of fixed manufacturing overhead at $14 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $255,000. Fixed manufacturing overhead incurred was $380,000. Actual machine-hours were 26,500. Read the requirements. 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. Variable OH Actual Input Actual Costs x Incurred Budgeted Rate Flexible Budget Allocated Overhead Requirements 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis. Prepare journal entries using the 4-variance analysis. 2. 3. 4. Discuss possible causes of the fixed manufacturing overhead variances. Describe how individual fixed manufacturing overhead items are controlled from day to day. Print Done -