Clocks Gone Wild makes clocks. the budgeted annual fixed overhead costs for 2017 total $720,000. Assume the fixed cost is spread evenly throughout the year. The company uses direct labor-hours for fixed overhead allocation and anticipates 240,000 hours during the year for 480,000 units. An equal number of units are budgeted for each month. During June, 43,000 clocks were produced and $63,000 was spent on fixed overhead. The fixed overhead rate is $3.00 per D.L.H. The amount of time required to complete one clock is 0.5 per clock. The standard fixed costs for on unit of output is $1.50 per unit. Based this information answer the following questions:

1.) Identify the respective fixed manufacturing overhead variances, compute the variances, determine if its favorable or unfavorable, and explain why it is favorable or unfavorable for June 2017.

Name of Fixed MFO Variance:

Amounts of Variance:

Favorable or Unfavorable

Explanation for why the variance is favorable or unfavorable:

Name of Fixed MFO Variance:

Amounts of Variance:

Favorable or Unfavorable

Explanation for why the variance is favorable or unfavorable:

2.) Prepare the journal entry to capture the fixed manufacturing overhead variances for June 2017.