Janson, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical capacity for a year is defined as 100,000 units requiring 20,000 standard direct labor hours. Budgeted overhead for the year is $76,000, of which $30,000 is fixed overhead. During the year, 96,000 units were produced using 19,000 direct labor hours. Actual annual overhead costs totaled $80,000, of which $29,600 is fixed overhead. Required: 1. Calculate the fixed overhead spending and volume variances. Fixed Overhead Spending Variance Favorable Fixed Overhead Volume Variance Unfavorable 2. Calculate the variable overhead spending and efficiency variances. < Variable Overhead Spending Variance Unfavorable Variable Overhead Efficiency Variance Favorable Feedback < 3. Prepare the journal entries that reflect the following: a. Assignment of overhead to production b. Recognition of the incurrence of actual overhead c. Recognition of overhead variances d. Closing out overhead variances, assuming they are not material Note: Close the variances with a debit balance first. For compound entries, if an amount box does not require an entry, leave it blank. a. Work in Process Variable Overhead Control Fixed Overhead Control b. Variable Overhead Control Fixed Overhead Control Miscellaneous Accounts c. Fixed Overhead Volume Variance Variable Overhead Spending Variance Variable Overhead Efficiency Variance Fixed Overhead Spending Variance Fixed Overhead Control Variable Overhead Control d. Cost of Goods Sold Fixed Overhead Spending Variance Note: Close the variances with a debit balance first. For compound entries, if an amount box does not require an entry, leave it blank. Work in Process a. Variable Overhead Control Fixed Overhead Control b. Variable Overhead Control Fixed Overhead Control Miscellaneous Accounts C. Fixed Overhead Volume Variance Variable Overhead Spending Variance Variable Overhead Efficiency Variance Fixed Overhead Spending Variance Fixed Overhead Control Variable Overhead Control d. Cost of Goods Sold Fixed Overhead Spending Variance Variable Overhead Efficiency Variance Fixed Overhead Volume Variance Variable Overhead Spending Variance X