$ 7.00 18.00 Holt Company has the following standards per finished unit for its product: Direct materials 2 lbs. @ $3.50 per lb. Direct labor 1.5 hrs. @ $12.00 per hr. Manufacturing overhead: Variable 1.5 Direct labor Hrs. @ $4.00 Fixed 1.5 DLH @ $6.00 per DLH Total standard cost per unit 6.00 9.00 $40.00 Results for October were: Budgeted units of production Actual units produced Direct materials purchases Direct materials used in production Direct labor Actual variable overhead Budgeted fixed overhead Actual fixed overhead 5,000 5,200 12,000 lbs. @ $3.75 per Ib. 9,800 lbs. 8,000 hrs. @ $11.80 per hr. = $94,400 $27,300 $ ? $47,300 a. Compute the total budgeted fixed overhead. b. What is the standard labor hours allowed for actual production (that is, how many labor hours should it have taken to make the actual units produced based on the standard for direct labor hours)? c. Compute the following variances for October: 1. variable overhead spending variance 2. variable overhead efficiency variance 3. fixed overhead spending variance 4. fixed overhead production volume variance d. Prepare journal entries to record the following the transactions and variances under a standard costing system: 1. Variable and fixed overhead incurred. 2. Variable and fixed overhead allocated to production 3. Close variable overhead accounts and record VOH variances 4. Close fixed overhead accounts and record FOH variances