K Simpson Manufacturing has the following standard cost sheet for one of its products: Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 2 hours at $25 per hour 5 pounds at $2 per pound Total $ 10 50 2 hours at $5 per hour 2 hours at $20 per hour 10 40 $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determine overhead rate based on a practical capacity of 400 units of the product. nt Simpson has the following actual operating results for the year just completed: ences Units manufactured 390 Direct materials purchased and used Direct labor incurred 1,950 pounds $ 21,450 900 hours Variable factory overhead incurred 24,300 5,760 Fixed factory overhead incurred 15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) Credit (total) $ 198,000 149,640 126,690 $ 149,640 126,690