Edney Company employs a standard cost system for product costing. The per$-$unit standard cost of its product is:Direct labor $(2$ direct labor hours x $$8\mathrm{.}00$ per hour$)$

Manufacturing overhead $(2$ direct labor hours $\backslash$times $$12\mathrm{.}00$ per hour$)$

The manufacturing overhead rate is based on a normal capacity level of $600,000$ direct labor hours. $($Normal capacity is defined as the

level of capacity needed to satisfy average customer demand over a period of two to four years. Operationally, this level of capacity

would take into consideration sales trends and both seasonal and cyclical factors affecting demand.$)$ The firm has the following annual

manufacturing overhead budget:

Edney incurred $$434,350$ in direct labor cost for $54,000$ direct labor hours to manufacture $26,000$ units in November. Other costs

incurred in November include $$290,000$ for fixed manufacturing overhead and $$337,500$ 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 spending variance.

b$.$ The variable overhead efficiency variance.

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

d$.$ The fixed overhead production 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 $$167,500,$ indirect materials of $$110,000($all materials, direct and indirect, are recorded in a single account, Materials

Inventory$),$ and $$60,000$ depreciation on factory equipment $($determined under the units$-$of$-$production method$).$ Assume that the fixed

manufacturing overhead consists of accrued $($i$.$e$,$ unpaid$)$ salaries of $$65,000$ and factory depreciation of $$225,000.$ All unpaid 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.$)$