Edney Company employs a standard cost system for product costing. The per$-$unit standard cost of its product is:

The manufacturing overhead rate is based on a normal capacity level of $600,000$ direct labor hours. The firm has the following annual

manufacturing overhead budget:

Edney incurred $$436,550$ in direct labor cost for $55,100$ direct labor hours to manufacture $26,000$ units in November. Other costs

incurred in November include $$356,000$ for fixed manufacturing overhead and $$387,000$ for variable manufacturing overhead.

Required:

Determine each of the following for November. $[$Note: Indicate whether each variance is favorable $(F)$ or unfavorable $(U).]$

a$.$ The variable overhead rate $($spending$)$ variance.

b$.$ The variable overhead efficiency variance.

c$.$ The fixed overhead budget $($spending$)$ variance.

d$.$ The fixed overhead volume variance.

e$.$ The total amount of under$-$ or overapplied manufacturing overhead $($i$.$e$.,$ the total manufacturing overhead cost variance for the

period$).$

Prepare the following four journal entries:

$($a$)$ to record actual variable overhead costs,

$($b$)$ to record actual fixed overhead costs,

$($c$)$ to record standard overhead costs applied to production, and

$($d$)$ to record all four overhead cost variances.

The company uses a single account, Factory Overhead, to record all overhead costs. Assume that the actual variable manufacturing

overhead consists of utilities payable of $$173,000,$ indirect materials of $$132,000($all materials, direct and indirect, are recorded in a

single account, Materials Inventory$),$ and $$82,000$ depreciation on factory equipment $($determined under the units$-$of$-$production method$).$

Assume that the fixed manufacturing overhead consists of accrued salaries of $$76,000$ and factory depreciation of $$280,000.$ All accrued

salaries should be recorded in a single account, Accrued Payroll.

Prepare the appropriate journal entry to close all manufacturing overhead variances to the cost of goods sold $($COGS$)$ account.

$($Assume the cost variances you calculated above are for the year, not the month.$)$