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 $1.30 per pound		$3.90
Direct labor		1.80 hour at $10.00 per hour		18.00
Overhead		2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour)		15.60
Standard cost per unit				$37.50

Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 3,400 pounds of raw materials on account at $1.38 per pound.
2.		Requisitioned 3,400 pounds of raw materials for Job No. 12.
3.		Incurred 1,860 hours of direct labor at a rate of $9.95 per hour.
4.		Worked 1,860 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $16,850.
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 $85,000.

(A):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 $1.30 per pound		$3.90
Direct labor		1.80 hour at $10.00 per hour		18.00
Overhead		2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour)		15.60
Standard cost per unit				$37.50

Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 3,400 pounds of raw materials on account at $1.38 per pound.
2.		Requisitioned 3,400 pounds of raw materials for Job No. 12.
3.		Incurred 1,860 hours of direct labor at a rate of $9.95 per hour.
4.		Worked 1,860 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $16,850.
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 $85,000.

A: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 $1.30 per pound		$3.90
Direct labor		1.80 hour at $10.00 per hour		18.00
Overhead		2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour)		15.60
Standard cost per unit				$37.50

Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 3,400 pounds of raw materials on account at $1.38 per pound.
2.		Requisitioned 3,400 pounds of raw materials for Job No. 12.
3.		Incurred 1,860 hours of direct labor at a rate of $9.95 per hour.
4.		Worked 1,860 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $16,850.
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 $85,000.

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

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