Manufacturing Overhead Variances Engraph Manufacturing Company uses standard direct labor hours as a basis for charging manufacturing overhead to Work-in-Process Inventory. The following data were taken from the records:

Required:
1. Compute the annual variable manufacturing overhead rate and annual fixed manufacturing overhead rate to be used to apply overhead to Work-in-Process Inventory.
2. Determine the variable overhead spending variance and the variable overhead efficiency variance for August.
3. Determine the fixed overhead budget variance and the volume variance for August.
4. Prepare the journal entry to transfer standard variable and fixed overhead costs to Work-in-Process Inventory.

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Data for August: Actual variable manufacturing overhead Actual fixed manufacturing overhead Actual units produced Actual direct labor hours Annual budget data: Budgeted variable manufacturing overhead cost Budgeted fixed manufacturing overhead cost. Budgeted units of production Budgeted direct labor hours $ 217,000 $ 265,700 8,000 33,000 $2,611,200 $3,304,800 102,000 408,000