Presented below is a flexible manufacturing budget for Ganem Manufacturing, which manufactures fine timepieces:

The company applies the overhead on the basis of direct labor hours at $7.00 per direct labor hour and the standard hours per timepiece are 1/2 hour each. The company's actual production was 5,400 timepieces with 2,700 actual hours of direct labor. Normal capacity is 3,200 hours. Actual overhead was $20,200.
Instructions
(a) Compute the controllable and volume overhead variances.
(b) Prepare the entries for manufacturing overhead during the period and the entry to recognize the overhead variances at the end of the period

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Activity Index: Standard direct labor hours 2,800 3,200 3,600 4,000 Variable costs Indirect materias Indirect labor Utilities S 5,600 3,220 7,280 16,100 S 6,400 3,680 8,320 18,400 S 7,200 4,140 9.360 20,700 $ 8,000 4,600 10,400 23,000 Total variable Fixed costs 1,000 3,000 4,000 $22,400 1,000 3,000 4,000 $24,700 Supervis ory salaries Rent 1,000 3,000 4,000 $20,100 1,000 3,000 4,000 $27,000 Total fixed Total costs