Compute overnead variances using a two-variance approc 37. LO.3 (Four OH variances; journal entries) Kemp Manufacturing set 70,000 direct labor hours as the 2013 capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $315,000. Kemp will apply budgeted fixed overhead of $140,400 on the basis of 3,900 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month. During March 2013, Kemp incurred 5,900 direct labor hours and 300 machine hours. Actual variable and fixed overhead were $26,325 and $11,400, respectively The standard times allowed for March production were 5,980 direct labor hours and 90 machine hours. Chapter 7 Standard Costing and Variance Analysis Ising the four-variance approach, determine the overthend variances for March a. 2013. are all journal entries related to overhead for Kemp Manufacturing for March Prep 2013 b. File Home Insert Page Layout FormulasData Review View Help Tell me what you want to do A15 NAME: BA 314 E7-37 3 Note Fill in the shaded boxes. Use formulas for full credit when possible EST VOH/EST DLH PVOHR STD RATE GEN JOURN ACCI V MFG OVH F MFG OH 315000 70000 DR CR ACTUAL VOH ACT Q X STD RATE STD Q X STD RATE 9 | VARO/H | 10 TOTAL COST 11 SPENDG VAR-((FVU) 5900 5980 26325 VAR ACCTS EFFICIENCY VAR-(FyU) TO RECORD ACTUAL OH INCURRED) 12 EST FOH / EST MHF =PFOHR :STD RATE W-L-P INVTY 40400 3900 V MFG OH F MFG OH BUDGET FOH(1 month) APPLIED STD Q XSTD R 290 ACTUAL FIX OH (EXP VOL X PFOHR) TO APPLY STD OH TO OUTPUT) 325 8 TOTAL COST 11400 11700 VOLUME VAR-(FyU) VOH SPEND VAR VOH EFFIC VAR (TO CLOSE OVERAPPLIED OH) FOH VOL VAR FOH SPEND VAR F MFG O/H TO CLOSE UNDERAPPLIED OH) E 37 Templ