American Hardwood Products uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the companys cost accountant.

	Direct Materials			Direct Labor			Manufacturing Overhead
Actual costs incurred	$	48,000		$	41,250		$	61,620
Standard costs		45,000			42,000			57,750
Materials price variance (favorable)		1,200
Materials quantity variance (unfavorable)		4,200
Labor rate variance (favorable)					1,500
Labor efficiency variance (unfavorable)					750
Overhead spending variance (unfavorable)								1,620
Overhead volume variance (unfavorable)								2,250

The total standard cost per unit of finished product is $15. During the current month, 5,000 units were completed and transferred to the finished goods inventory and 4,000 units were sold. The inventory of work in process at the end of the month consists of 500 units that are 60 percent complete. There was no inventory in process at the beginning of the month.

Required:

a. Prepare journal entries to record all variances and the costs incurred (at standard) in the Work in Process account as separate compound entries for (1) direct materials, (2) direct labor, and (3) manufacturing overhead.

b. Prepare journal entries to record (1) the transfer of units finished to the Finished Goods Inventory account and (2) the Cost of Goods Sold (at standard) for the month.

c. Assuming that the company operated at 80 percent of its normal capacity during the current month, what is the amount of the budgeted fixed manufacturing overhead per month?