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 3.700 output units per year, included 6 machine-hours of variable manufacturing overhead at $0 per hour and machine-hours of fixed manufacturing overhead at $14 per hour. Actual output produced was 4,000 units. Variable manufacturing overhead incurred was $255,000. Fixed manufacturing overhead incurred was $373.000 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 Flexible Actual Costs Incurred Allocated Overhead Budgeted Rate Budget Variable OH 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. 3