Four OH variances; journal entries Kemp Manufacturing set 210,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $945,000. Kemp will apply budgeted fixed overhead of $421,200 on the basis of 11,700 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 17,700 direct labor hours and 900 machine hours. Actual variable and fixed overhead were $78,975 and $34,200, respectively. The standard times allowed for March production were 17,940 direct labor hours and 870 machine hours. a. Using the four-variance approach, determine the overhead variances for March. Note: Do not use negative signs with your answers. Actual VOH $ 0 Budgeted VOH $ Actual FOH - VOH Spending Variance Budgeted VOH = VOH Spending Variance - 0 = $ VOH Efficiency Variance 0 Applied VOH = VOH Efficiency Variance 0 $ Budgeted FOH 0 = $ FOH Spending Variance 0 = FOH Spending Variance $ 0 $ 0 = 0 FOH Volume Variance Budgeted FOH Applied FOH $ 0 $ = FOH Volume Variance 0 = $ 0