Four OH variances; journal entries Kemp Manufacturing set 84,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $378,000. Kemp will apply budgeted fixed overhead of $168,480 on the basis of 4,680 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 7,080 direct labor hours and 360 machine hours. Actual variable and fixed overhead were $31,590 and $13,680, respectively. The standard times allowed for March production were 7,176 direct labor hours and 348 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 Budgeted VOH Actual FOH $ = $ VOH Efficiency Variance Applied VOH = VOH Efficiency Variance = $ FOH Spending Variance Budgeted FOH = FOH Spending Variance $ Budgeted FOH FOH Volume Variance Applied FOH FOH Volume Variance $ $ b. Prepare all journal entries related to overhead for Kemp Manufacturing for March. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit To record actual overhead cost for March To apply overhead to work in process for March To record variable overhead variances for March To record fixed overhead variances for March