Andy Manufacturing Company Limited is a professional manufacturer and exporter of various science & educational toys as well as kids arts & crafts products. The companys award-winning products are being distributed all over the world. To remain competitive, the company continues to expand its product line. In the past month, the company produced a newly invented educational toys, mainly for young kids.

The cost of each toys comprises:

• direct material costs
• direct manufacturing labor costs
• variable manufacturing overhead costs and
• fixed manufacturing overhead costs

For the month ending 30 June 2020, the company reports the following information:

1. Variable manufacturing overhead cost is allocated to each toys on the basis of budgeted direct manufacturing labor-hours per toys. For the month ending 30 June 2020, each toys is budgeted to take 4 labor-hours. Fixed manufacturing overhead cost is allocated to each toys on the basis of budgeted direct manufacturing labor-hours per toys.
2. The budgeted number of toys to be manufactured in June 2020 is 2,200.
3. Budgeted variable manufacturing overhead cost per labor-hour is $14.
4. Actual variable manufacturing costs in June 2020 were $130,410 for 2,300 toys started and completed.
5. Actual direct manufacturing labor-hours for June 2020 were 9,660. There were no beginning inventories or ending inventories for the toys.
6. Fixed manufacturing overhead costs for June 2020, are budgeted at $140,800 and actual at $144,400.

Required:

1. Calculate the variable manufacturing overhead flexible-budget variance, the spending variance, and the efficiency variance. Comments on these results.

2. Calculate the fixed manufacturing overhead spending variance, and the production-volume variance Comment on these results.

3. Prepare journal entries to: (i) assign variable manufacturing overhead costs, (ii) recognize actual variable manufacturing overhead costs, and (iii) record variable manufacturing overhead variances to production in the past month.

4. Prepare journal entries to: (i) assign fixed manufacturing overhead costs, (ii) recognize actual fixed manufacturing overhead costs, and (iii) record fixed manufacturing overhead variances to production in the past month.