You dont have to do the graph but please help me solve requi

You dont have to do the graph but please help me solve requirement 2-4. Thanks!

1. Top Notch, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was $21,000,000. Budgeted variable manufacturing overhead was $11 per machine-hour. The denominator level was Read the requirements\' Requirement 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Top Notch, Inc.\'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing (Enlarge the graph and use the tool line button displayed to draw the graph.) Fixed Manufacturing Overhead Costs 500 18 888 988888 1,500 0 400,000800,000,200,000 Requirement 2. Suppose that 1,050,000 machine-hours were allowed for actual output produced in 2017, but 975,000 actual machine-hours were used. Actual manufacturing overhead was $10,237,500, variable, and $21,075,000, fixed. Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the foxed manufacturing overhead spending and production-volume variances (a) Begin by calculating the following amounts for the variable manufacturing overhead. Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overheacd Variable ??? Now compute the variable manufacturing overhead spending and efficiency variances. (Label each variance as favorable (F) or unfavorable (U).) Spending variance Efficiency variance (b) Now compute the following amounts for the fixed manufacturing overhead Same Budgeted Lump Sunm Regardless of Actual Costs Flexible Allocated IncurredOutput Level Overhead Fixed MOH tps kitemprod pearsoncmg.com/apivt/printaccounting 1/3

Solution

REQUIEMENT 2

Budgets

Budgeted Fixed overhed=$2100000

Budgeted Variable Overhead=$11 per machine hour

Budgeted Hour=1000000

Budgeted Fixed Overhead Rate=21000000/1000000= 21

Actuals

Actual mavhine hour used=975000

Actual machne hour allocated=1050000

Variable Overhead Variance-

Actual Variable overhead=$10237500

Rate=10237500/975000=10.50

Spending Variance=(11.00-10.50)975000=487500 (F)

Efficiency Variance=(1050000-975000)11=825000(F)

Fixed Overhead Variance-

Budgetd Fixed Rate=21

Acutal Fixed Overhead Rate=21075000/975000=21.63

Spending Variance=(21-21.63)975000=600000(U)

Efficency Variance=(1000000-975000)*21=525000 (F)