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The Platter Valley factory of Bybee Industrles manufactures field boots. The cost of each boot includes direct materlals,

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 $$9,600$ varlable factory overhead cost, $$92,000$ for fixed factory overhead cost and $2,000$ direct

labor hours $($its practical capacity$)$ to manufacture $4,000$ palrs of boots in March.

The factory used $3,700$ direct labor hours in March to manufacture $3,800$ palrs of boots and spent $$16,800$ on varlable

overhead during the month. The actual fixed overhead cost incurred for the month was $$95,000.$

Requlred:

Compute the fixed overhead spending $($budget$)$ varlance and the production volume varlance for March and Indicate whether each

varlance is favorable $($F$)$ or unfavorable $(U).$

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

Provide the approprlate journal entry to record the fixed overhead spending varlance and the approprlate journal entry to record the

production volume varlance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

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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. $($If

no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

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