Kemp Manufacturing set 84,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $378,000. Kemp will apply budgeted fixed overhead of $168,480 on the basis of 4,680 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month. During March, Kemp incurred 7,080 direct labor hours and 360 machine hours. Actual variable and fixed overhead were $31,590 and $13,680, respectively. The standard times allowed for March production were 7,176 direct labor hours and 348 machine hours. a. Using the four-variance approach, determine the overhead variances for March.

Note: Do not use negative signs with your answers.

VOH Spending Variance
Actual VOH	-	Budgeted VOH	=	VOH Spending Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

VOH Efficiency Variance
Budgeted VOH	-	Applied VOH	=	VOH Efficiency Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

FOH Spending Variance
Actual FOH	-	Budgeted FOH	=	FOH Spending Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

FOH Volume Variance
Budgeted FOH	-	Applied FOH	=	FOH Volume Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

b . Prepare all journal entries related to overhead for Kemp Manufacturing for March. Note: Record any multiple debits or any multiple credits in alphabetical order by account name.

Account	Debit	Credit
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
To record actual overhead cost for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
To apply overhead to work in process for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
To record variable overhead variances for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory	Answer	Answer
To record fixed overhead variances for March