Four OH variances; journal entries Kemp Manufacturing set 182,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $819,000. Kemp will apply budgeted fixed overhead of $365,040 on the basis of 10,140 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 15,340 direct labor hours and 780 machine hours. Actual variable and fixed overhead were $68,445 and $29,640, respectively. The standard times allowed for March production were 15,548 direct labor hours and 754 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 0 - $ Budgeted VOH Actual FOH $ 0 = $ 0 0 VOH Efficiency Variance Applied VOH = VOH Efficiency Variance 0 = $ FOH Spending Variance Budgeted FOH = FOH Spending Variance 0 - $ 0 0 FOH Volume Variance FOH Volume Variance Budgeted FOH Applied FOH 0 0 = $ 0