Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017:

	Actual Results	Flexible Budget	Static Budget	Allocated Amount
Output units	960		915
Machine-hours	1,632	1,920	1,830
Machine-hours per output unit	1.70		2.00
Variable MOH costs	$71,808	$80,640	$76,860	$80,640
Variable MOH costs per machine-hour			$42.00
Fixed MOH costs	$360,672	$351,360		$368,640
Fixed MOH costs per machine-hour			$192.00

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

Begin by calculating the following amounts for the variable overhead that will be used to calculate the various variances.

	Actual Costs Incurred	Actual Input × Budgeted Rate	Flexible Budget	Allocated Overhead
Variable MOH

Now complete the table below for the fixed manufacturing overhead that will be used to calculate the various variances.

	Actual Costs Incurred	Same Budgeted Lump Sum Regardless of Output Level	Flexible Budget	Allocated Overhead
Fixed MOH

Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).)

4-Variance Analysis	Spending Variance		Efficiency Variance		Production-Volume Variance
Variable MOH
Fixed MOH

Prepare journal entries for variable and fixed manufacturing overhead. (Record debits first, then credits. Exclude explanations from any journal entries.)

Record the actual variable manufacturing overhead incurred.

Journal Entry
Date		Accounts	Debit	Credit

Record the variable manufacturing overhead allocated.

Journal Entry
Date		Accounts	Debit	Credit

Record the variable manufacturing overhead variances for the period.

Journal Entry
Date		Accounts	Debit	Credit

Record the actual fixed overhead costs incurred.

Journal Entry
Date		Accounts	Debit	Credit

Record the fixed overhead costs allocated.

Journal Entry
Date		Accounts	Debit	Credit

Record the fixed overhead variances for the period.

Journal Entry
Date		Accounts	Debit	Credit

Requirement 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. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit