Straightforward Overhead Analysis The Crum Company uses a standard-cost system. Its standard cost of Product Y, based on a denominator activity of 40,000 units per year, included six hours of variable overhead at $.80 per hour and six hours of fixed overhead at $1.50 per hour. Actual output achieved was 44,000 units. Actual variable factory overhead was $240,000. Actual hours of input were 284,000. Actual fixed overhead was $368,000.

Prepare journal entries. Prepare a worksheet analysis for all variableoverhead and fixed-overhead variances, using the approach illustrated in the chapter. lop5