Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,600 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials		2 pounds at $1.00 per pound		$ 2.00
Direct labor		1.00 hour at $10 per hour		10.00
Overhead		2 hours (variable $4.00 per machine hour; fixed $3.00 per machine hour)		14.00
Standard cost per unit				$26.00

Normal capacity for the month was 4,430 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 3,696 pounds of raw materials on account at $1.07 per pound.
2.		Requisitioned 3,696 pounds of raw materials for Job No. 12.
3.		Incurred 1,712 hours of direct labor at a rate of $9.91 per hour.
4.		Worked 1,712 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $34,180.
6.		Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7.		Completed Job No. 12.
8.		Billed customer for Job No. 12 at a selling price of $150,400. (a) Journalize the transactions. (b) Post to the job order cost accounts. (c) Prepare the entry to recognize the total overhead variance. (d) Prepare the January 2012 income statement for management. Assume selling and administrative expenses were $2,000.