Jonah Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data is taken from the budget prepared by Jonah's controller at the beginning of the year. The company uses a predetermined overhead rate based on annual budgeted amounts and applies overhead on the basis of machine hours.
Annual Budget
Variable manufacturing overhead... $2,400,000
Fixed manufacturing overhead.... $1,200,000
Direct labor hours ........ 48,000
Machine hours .......... 240,000

During the year, Jonah used 51,500 direct labor hours and 250,010 machine hours. The standard quantity for actual production was 50,000 direct labor hours and 250,000 machine hours. Actual fixed manufacturing overhead incurred was $1,198,500; variable manufacturing overhead incurred was $2,455,000.

Required
a. Prepare the journal entries to record actual and applied fixed overhead for the year.
b. Calculate the fixed overhead spending and volume variances for the year.
c. Why did Jonah have a fixed overhead volume variance?
d. Was fixed overhead under- or over applied? By how much?
e. Prepare the journal entry to record the fixed overhead spending and volume variances.
f. Prepare the journal entry to close the fixed overhead variances to Cost of Goods Sold.