Four OH variances; journal entries Kemp Manufacturing set 140,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $630,000. Kemp will apply budgeted fixed overhead of $280,800 on the basis of 7,800 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month. During March, Kemp incurred 11,800 direct labor hours and 600 machine hours. Actual variable and fixed overhead were $52,650 and $22,800, respectively. The standard times allowed for March production were 11,960 direct labor hours and 580 machine hours. a. Using the four-variance approach, determine the overhead variances for March. Note: Do not use negative signs with your answers. VOH Spending Variance Actual VOH Budgeted VOH VOH Spending Variance $ 630,000 VOH Efficiency Variance Budgeted VOH-Applied VOH VOH Efficiency Variance $ $ FOH Spending Variance Actual FOH $ Budgeted FOH FOH Spending Variance FOH Volume Variance Applied FOH FOH Volume Variance $ Budgeted FOH $ $