The Tavarez 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 $8 per hour and machine-hours of fixed manufacturing overhead at $17 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $260,000. Fixed manufacturing overhead incurred was $380,000. Actual machine-hours were 27,500. 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 Allocated Actual Costs Incurred Flexible Budget Budgeted Rate Overhead Variable OH Now complete the table below for the fixed manufacturing overhead. Same Budgeted Lump Sum Actual Costs Regardless of Incurred Output Level Allocated Flexible Budget Overhead Fixed OH Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists, leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Spending Efficiency Production-Volume Analysis Variance Variance Variance Variable OH Fixed OH Requirement 2. Prepare journal entries using the 4-variance analysis. Record the actual variable manufacturing overhead Incurred. (Record debits first, then credits. Exclude explanations from any journal entries.)