Prorate Variances: Thai Imports acquires clothing from Bangkok and completes the clothing in a maquilladora plant in Juarez. The company uses a traditional standard costing system so it can evaluate variances. During the fall season. Thai Imports received materials for 50,000 men's shirts at its Juarez plant. Forty-eight thousand unfinished shirts were started in production. Work was completed on 41,500 shirts, and 39,800 were sold. The shirts still in process were 50 percent complete at the end of the period. Certain information about standards and actual results are as follows:

The company expected to complete 50,000 shirts during the period and purchased sufficient finishing materials for the expected output. Labor is paid on a piecework basis. Overhead and labor costs are incurred equally throughout the finishing process so that the 6,500 shirts still in process at the end of the period are equivalent to 3,250 completed shirts for the purposes of evaluating standard costs for finishing materials, labor, and overhead. Overhead is applied based on the 44,750 (= 41,500 + 3,250) equivalent number of shirts produced. Budgeted fixed overhead is equal to 30 percent of the total finishing overhead. Actual fixed overhead for the period, which is included in the 73 cent cost, above, was $4,400. There were no beginning inventories.

Required: Prepare the journal entries to prorate the variances for the period. A single entry may be used for all overhead variances.

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Unfinished shirts Finishing materials Total finishing overhead Labor costs Standard (per shirt) $6.00 888 Actual (per shirt) $6.10 082 .80 .73 .75 .60 .30 .34