Gateshead Industries manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following:

Actual fixed manufacturing overhead $ $232,400$

Actual variable manufacturing overhead $308,000$

Applied fixed manufacturing overhead $216,000$

Applied variable manufacturing overhead $318,000$

Budgeted fixed overhead $211,400$

Variable overhead efficiency variance $8,500$ U

Thirty percent of this period's production has not been sold. There are never any work$-$in$-$process inventories.

Required:

a$.$ Assume Gateshead writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances.

b$.$ Assume Gateshead prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.