The Rodriguez 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 $3,700$ output units

per year, included $6$ machine$-$hours of variable manufacturing overhead at $$8$ per hour and $6$ machine$-$hours of fixed manufacturing overhead at $$13$ per hour. Actual output produced

was $4,000$ units. Variable manufacturing overhead incurred was $$265,000.$ Fixed manufacturing overhead incurred was $$385,000.$ 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.

Actual Input

Requirements

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.

Describe how individual fixed manufacturing overhead items are controlled

from day to day.

Discuss possible causes of the fixed manufacturing overhead variances.