Standard Overhead Costs: The following information appeared in the accounts of the Rapid Cities Corporation.

Fixed overhead was applied at the rate of $4.25 per direct labor-hour, and 48,000 hours were budgeted for the period. The company uses a standard costing system. The 100,000 units produced during the period required 47,500 actual direct labor- hours.

Required: Prepare journal entries for these transactions, including overhead variances. Units sold were 80,000. There were no beginning or ending work in process inventories, and no beginning finished goods inventory.

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Actual manufacturing overhead: $485,000 Fixed portion $210,000 Variable portion 275,000 Overhead applied at standard: 465,836 Fixed portion $215,900 Variable portion 249,936