2. Accounting for Variances/Journal Entries to record the following:

E. Fixed Overhead

F. Overhead Variances and Closing overhead accounts.

G. Closing/disposition of overhead variances.

Exercise V Extreme Corporation has the following a standard cost sheet, various actual and budgeted operating data for the month of January 20xx Standard Cost Sheet Description Direct materials Direct labor Variable overhead Fixed Overhead Standard cost per unit Standard Standard Price Usage P 15.00/kg 10 kgs P 60.00/hr. 2 hours P100.00/hr 2 hours P 80.00/hr 2 hours Standard Cost/Unit P150.00 120.00 200.00 160.00 P630.00 Actual operating data for the period: Units produced 20,000 units Materials purchased 210,000 kilograms purchased @ P15.50/kg Materials used: 205,000 kg Direct labor costs: 39,000 hours @ P61.00 per hour Variable overhead P4,100,000 Fixed overhead: P3,000,000 Budgeted Fixed Overhead for the period: Budgeted amount P3,100,000 Budgeted no. of hours: 38,750 hours Required: 1. Compute the following: a. Materials Flexible Budget Variance b. Labor Flexible Budget Variance c. Variable Overhead Flexible Budget Variance d Fixed Overhead Flexible Budget Variance