Comprehensive, Straightforward Problem on a Standard-Cost System The Brandon Company uses a standard cost system. The month’s data regarding its lone product follows:

Fixed-overhead costs incurred, $6,150 Variable overhead applied at $.90 per hour Standard direct-labor cost, $4.00 per hour Standard material cost, $1.00 per pound Standard pounds of material in a finished unit, 3 Denominator production per month, 2,500 units Standard direct-labor hours per finished unit, 5 Materials purchased, 10,000 Ibs., $9,500 Materials used, 6,700 Ibs.
Direct-labor costs incurred, 11,000 hours, $41,800 Variable-overhead costs incurred, $9,500 Fixed-overhead budget variance, $100, favorable Finished units produced, 2,000 Prepare journal entries. Prepare schedules of all variances, using the worksheet approach described in this chapter. Material price variances are isolated as materials are purchased.