The Lake Model Boat Company uses a standard cost system. Factory overhead is applied using a predetermined rate that is based on normal capacity. Below is information for March: mklo4

Required:
Determine the factory overhead variances using the two-factor analysis method and prepare the journal entries.

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Standard direct labor hours allowed. Budgeted variable overhead. Budgeted fixed overhead. Actual direct labor hours 26,000 $33,000 $27,000 28,000 $53,250 Actual factory overhead... Normal capacity direct labor hours. 30,000