Abbey Corporation charges factory overhead to production on the basis of the standard processing time allowed for actual production. The following data relate to the results of operations for December:
Normal capacity in processing hours ...........................................10,000
Standard processing hours allowed for actual production .................. 9,400
Actual processing hours required during December........................10,600
The factory overhead per hour of processing based on normal capacity is as follows:

Actual factory overhead incurred during December totaled $195,500.
Required:
Give general journal entries to apply overhead to production-assuming actual and applied overhead are recorded in separate accounts-and to close the overhead accounts and recognize four overhead variances.

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Variable overhead Fixed overhead Total factory overhead $45,000 ÷ 10,000 hours- $4.50 155,00010,000 hours15.50 $200,000 ÷ 10,000 hours $20.00 =