The Delcarmen Company uses standard costing in its manufacturingplant for auto parts. The standard cost of a particular auto? part,based on a denominator level of 4,500 output units per? year,included 5 ?machine-hours of variable manufacturing overhead at $7per hour and 5 ?machine-hours of fixed manufacturing overhead at$14 per hour. Actual output produced was 5,100 units. Variablemanufacturing overhead incurred was $255,000. Fixed manufacturingoverhead incurred was $380,000. Actual ?machine-hours were28,500.
requirements
1. | Prepare an analysis of all variable manufacturing overhead andfixed manufacturing overhead? variances, using the? 4-varianceanalysis. Begin by calculating the following amounts for the variableoverhead. |
2. | Prepare journal entries using the? 4-variance analysis. |
3. | Describe how individual fixed manufacturing overhead items arecontrolled from day to day. |
4. | Discuss possible causes of the fixed manufacturing overheadvariances. |
