Variety Products Inc. The publishing division publishes children's books The following are the results for the most recent month SOUnit 50 Allowed 140 Standards Units SP Standards Production 10,000 Variable Overhead Machine hours 0.014 120.00 16,800 Actual variable overhead was $20,000 The production manager's explanation for the variable overhead variances is that a critical piece of equipment failed. Excluding that unexpected event, he is convinced that he would have been within budget (standard) for his variable overheads. . The equipment failure resulted in additional maintenance costs of $2,500. . The equipment failure downtime reduced production output by 500 units Required: 1. Prepare an analysis to restate the flexible VOH budget, the adjusted actual costs and recompute the variable overhead total variance as if the equipment failure had not occurred. 2. Is the production manager correct that the variance was fully caused by the failure? Explain. Input the following before moving on to the next question. Reg 1. What is the total variable overhead variance? ** ALT F10 (PC) or ALTHEN F10 (Mac). T. X a ii