(Solved): Overhead Variances, Four-Variance Analysis, Journal Entries Laughlin, Inc., uses a standard costing ...

Overhead Variances, Four-Variance Analysis, Journal Entries Laughlin, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical capacity for a year is defined as

units requiring 200,000 standard direct labor hours. Budgeted overhead for the year is

, of which

is fixed overhead. During the year, 900,000 units were produced using 190,000 direct labor hours. Actual annual overhead costs totaled

, of which

is fixed overhead. Required: Calculate the fixed overhead spending and volume variances. Fixed Overhead Spending Variance Calculate the variable overhead spending and efficiency variances. Variable Overhead Spending Variance

Variable Overhead Efficiency Variance

Prepare the journal entries that reflect the following: a. Assignment of overhead to production b. Recognition of the incurrence of actual overhead c. Recognition of overhead variances d. Closing out overhead variances, assuming they are not material