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SB $($Static$)$ The Platter Valley factory of Bybee Industries...

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The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing $($factory$)$ overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours.

The company budgeted $$15,000$ variable factory overhead cost, $$90,000$ for fixed factory overhead cost and $2,500$ direct labor hours $($its practical capacity$)$ to manufacture $5,000$ pairs of boots in March.

The factory used $2,700$ direct labor hours in March to manufacture $4,800$ pairs of boots and spent $$15,600$ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $$92,000.$

$($ DLH $=$ Direct Labor Hours, FB $=$ Flexible Budget, $AQ=$ Actual Quantity, $SQ=$ Standard Quantity, AP $=$ Actual Price, AH Actual Hours, $SH=$ Standard Hours, and $SP=$ Standard Price$)$

Exercises $15-31($Static$)$ Three$-$Variance vs$.$ Four$-$Variance Analysis of the Total Factory Overhead Variance $[$LO $15-2,15-3]$

The Platter Valley factory of Bybee Industries currently uses a four$-$variance analysis of the total factory overhead cost variance but i thinking of changing to a three$-$variance analysis.

Required:

Compute the total overhead spending variance, the $($variable overhead$)$ efficiency variance, and the production volume variance fc March and indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Prepare the appropriate journal entries at the end of March to record each of the following: $($a$)$ the total overhead spending varian $($b$)$ the $($variable overhead$)$ efficiency variance, and $($c$)$ the production volume variance. Assume that all overhead costs are recorded a single account called "Factory Overhead."

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Compute the total overhead spending variance, the $($variable overhead$)$ efficiency variance, and the production volume variance for March and indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

$\backslash$table$[[$Spending Variance,$\frac{\text{E}\text{f}\text{f}\text{i}\text{c}\text{i}\text{e}\text{n}\text{c}\text{y}\text{V}\text{a}\text{r}\text{i}\text{a}\text{n}\text{c}\text{e}}{1,800\text{U}\text{n}\text{f}\text{a}\text{v}\text{o}\text{r}\text{a}\text{b}\text{l}\text{e}},$Production Volume Variance$],[$$$,2,600$ Unfavorable,$$,3,600$ Unfavorable$]]$