Comprehensive Variance analysis: Chef Whiz manufactures premium food processors. The following are some manufacturing overhead data for Chef Whiz for the year ended December 31, 2014.

Manufacturing OH Actual Results Flexible Budget Allocated Amount

Variable $51,480 $79,950 $79,970

Fixed 350,210 343,980 38,350

Budgeted number of output: 588

Planned allocation rate: 3 machine-hours per unit

Actual number of machine-hours used: 1170

Static-budget variable manufacturing OH costs: 72,324

Compute the following quantities (you should be able to do so in the prescribed order):

1. Budgeted number of machine-hours planned

2. Budgeted fixed manufacturing OH costs per machine-hour

3. Budgeted variable manufacturing OH costs per machine-hour

4. Budgeted number of machine-hours allowed for actual output produced

5. Actual number of output units 6. Actual number of machine-hours used per output unit.

ANSWERS:

Solution-1 588 Units*3 Machine hours (per unit) = 1,764 machine hours

Solution-2 $343,980 / 1,764 machine hours = $195.00 per machine hour

Solution-3 $72,324 / 1,764 machine hours = $41.00 per machine-hour

Solution-4 $79,950 / $41.00 per machine hour= 1,950 machine hours

Solution-5 1,950 machine hours / 3 per unit = 650 units

Solution-6 1,170 machine hours / 650 units = 1.8 machine hours used per unit

(I NEED THE BELOW ITEM FOR 8-31 BOTH # 1 & 2)

#8-31

# 1 Prepare journal entries for variable and fixed manufacturing overhead (you will need to calculate the various variances to accomplish this).

#2 Overhead variances are written off to the Cost of Goods Sold (COGS) account at the end of the fiscal year. Show how COGS is adjusted through journal entries