The Singapore 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:

Required1. Prepare an analysis of all manufacturing overhead variances. Use the 4-variance analysis framework illustrated in Exhibit 8-4 (p. 277).2. Prepare journal entries for manufacturing overhead costs and their variances.3. Describe how individual variable manufacturing overhead items are controlled from day to day.4. Discuss possible causes of the variable manufacturing overheadvariances.

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$618,840 Variable manufacturing overhead costs incurred $8 per standard machine-hour Variable manufacturing overhead cost rate $145,790 Fixed manufacturing overhead costs incurred $144,000 Fixed manufacturing overhead costs budgeted Denominator level in machine-hours 72,000 Standard machine-hour allowed per unit of output 1.2 Units of output 65,500 Actual machine-hours used 76,400 Ending work-in-process inventory