budgeted machine hours. - Static Budget: - Total fixed manufacturing overhead is budgeted at $25 per machine hour. - Each unit is budgeted for 3 direct machine hours - 8,800 units were planned for production - Actual results - 7,900 units were produced - Each unit took 2.8 hours of actual machine time; machine time was paid at a rate of $22 per hour. Required 1. What is the denominator level used for allocating fixed manufacturing overhead costs? 2. Prepare a variance analysis of Fixed Manufacturing Overhead costs; ensure to report a rate variance and a production volume variance. 3. Indicate if Fixed Manufacturing Overhead costs are over or under allocated and by how much. 4. Prepare the journal entries to record the FMOH costs, variance and write off to the Cost of Goods Sold. Assume all purchases are on account