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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 $4,000$ pairs 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 factory overhead flexible$-$budget varlance, the factory overhead spending varlance, and the efficlency

varlance for varlable factory overhead for March and state whether each varlance is favorable $($F$)$ or unfavorable $($U$).$

Provide the approprlate journal entry to record the varlable overhead spending varlance and a second entry to record

the varlable overhead efficlency varlance for March. Assume that the company uses a single account, Factory Overhead, to

record overhead costs.

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