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		1.00 hour at $8.00 per hour		8.00
Overhead		2 hours (variable $4.00 per machine hour; fixed $2.50 per machine hour)		13.00
Standard cost per unit				$24.00

Normal capacity for the month was 4,000 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 3,100 pounds of raw materials on account at $1.04 per pound.
2.		Requisitioned 3,100 pounds of raw materials for Job No. 12.
3.		Incurred 1,040 hours of direct labor at a rate of $7.95 per hour.
4.		Worked 1,040 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $14,250.
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 $75,000.

(a) Journalize the transactions. (b) Post to the job order cost accounts.

(c) Prepare the entry to recognize the total overhead variance