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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 $$10,000$ variable factory overhead cost, $$92,500$ 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 $4,700$ direct labor hours in March to manufacture $4,800$ pairs of boots and spent $$17,800$ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $$96,500.$

$($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$)$

Required:

Compute the factory overhead flexible$-$budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

Required:

Compute the fixed overhead spending $($budget$)$ variance and the production volume variance for March and indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Compute the fixed overhead flexible$-$budget variance for March. Is this variance favorable $($F$)$ or unfavorable $($U$)?$

Provide the appropriate journal entry to record the fixed overhead spending variance and the appropriate journal entry to record the production volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

Required:

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$).$

Prepare the appropriate journal entries at the end of March to record each of the following:

$($a$)$ The total overhead spending variance, $($b$)$ The $($variable overhead$)$ efficiency variance, $($c$)$ The production volume variance.

Assume that all overhead costs are recorded in a single account called "Factory Overhead."

Required:

Compute the total flexible$-$budget variance for overhead and the production volume variance for March. What was the total factory overhead cost variance for March? Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Determine the three components of the total flexible$-$budget variance for overhead $($i$.$e$.,$ the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance$)$; in addition, show the production volume variance for March. Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

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$[$The following information applies to the questions displayed below.$]$

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 $\backslash (\backslash$$ $10,000\backslash )$ variable factory overhead cost, $\backslash (\backslash$$ $92,500\backslash )$ 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 $4,700$ direct labor hours in March to manufacture $4,800$ pairs of boots and spent $\backslash$$$17,800$ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $\backslash (\backslash$$ $96,500\backslash ).$

$($DLH $=$ Direct Labor Hours, FB $=$ Flexible Budget, $\backslash ($ A Q$=\backslash )$ Actual Quantity, $\backslash ($ S Q$=\backslash )$ Standard Quantity, $\backslash ($ A P$=\backslash )$ Actual Price, $\backslash (\backslash$mathrm$\{$AH$\}=\backslash )$ Actual Hours, $\backslash (\backslash$mathrm$\{$SH$\}=\backslash )$ Standard Hours, and SP $=$ Standard Price$)$

Required $1$

Required $2$

Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.

$($

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Required $1$

Provide the appropriate journal entry to record the fixed overhead spending variance and the appropriate journal entry to record the production volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.

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