The Thailand division of a Canadian telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: (Click the icon to view data.) Read the requirements Requirement 1. Prepare an analysis of all manufacturing overhead variances. Use the 4-variance analysis framework. Begin by calculating the following amounts for the variable overhead Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overhead Variable OH 463570 Now complete the table below for the fixed manufacturing overhead. Same Budgeted Lump Sum Regardless of Output Level Actual Costs Flexible Allocated Incurred Budget Overhead Fixed OH x i Data Table - Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours Standard machine-hour allowed per unit of output Units of output Actual machine-hours used Ending work-in-process inventory $463,570 $6 per standard machine-hour $146,500 $140,000 70,000 1.2 65,000 76,000 0 Print Done The Thailand division of a Canadian telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: (Click the icon to view data.) Read the requirements 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 Production-Volume Spending Variance Efficiency Variance Variance Analysis Variable OH Fixed OH Requirement 2. Describe how individual variable manufacturing overhead items are controlled from day to day. Individual variable manufacturing overhead items are affected very much by day-to-day control. They are controlled Control often entails monitoring measures that affect each cost item, one by one. Such as, Requirement 4. Discuss possible ca of the variable manufacturing overhead variances. The variable overhead spending variance is This means that the actual rate applied to the manufacturing costs is than the budgeted rate. This could be because the utility rates were than estimated or the indirect materials costs per unit were Vestimated V use of the machines, The variable overhead efficiency variance is scheduling of production runs or machines that are which implies that the estimated denominator activity was than actual. Since the denominator activity is machine hours, this could be the result of and thus are working at the expected level of efficiency