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	$	90,388		$	76,196		$	115,908
Standard costs		84,388			77,696			108,168
Materials price variance (favorable)		2,400
Materials quantity variance (unfavorable)		8,400
Labor rate variance (favorable)					3,000
Labor efficiency variance (unfavorable)					1,500
Overhead spending variance (unfavorable)								3,240
Overhead volume variance (unfavorable)								4,500

The total standard cost per unit of finished product is $30. During the current month, 9,000 units were completed and transferred to the finished goods inventory and 8,800 units were sold. The inventory of work in process at the end of the month consists of 1000 units that are 65 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 90 percent of its normal capacity during the current month, what is the amount of the budgeted fixed manufacturing overhead per month?