Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials 3 pounds at $1.00 per pound $3.00 Direct labor 1.90 hour at $10.00 per hour 19.00 Overhead 2 hours (variable $4.20 per machine hour; fixed $3.40 per machine hour) 15.20 Standard cost per unit $37.20 Normal capacity for the month was 4,070 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 3,100 pounds of raw materials on account at $1.05 per pound. 2. Requisitioned 3,100 pounds of raw materials for Job No. 12. 3. Incurred 1,950 hours of direct labor at a rate of $9.90 per hour. 4. Worked 1,950 hours of direct labor on Job No. 12. 5. Incurred manufacturing overhead on account $16,780. 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 $80,000.

Jouranlize transactions

&post to the job order cost accounts

Prepare the entry to recognize the total overhead variance.

Prepare the January 2020 income statement for management. Assume selling and administrative expenses were $2,800.