1. Make fully labeled variance diagrams(used in Class) for manufacturing overhead splitting them between variance and fixed (10 Marks)

Denominator level in hours	40,000
Actual output in units	21,000
Std. Variable overhead rate per machine hour	$2.80
Actual variable overhead incurred	$117,000
Actual fixed overhead incurred	$302,100
Variable overhead applied	$117,600
Variable overhead Efficiency Variance	$8,400 U
Fixed overhead budget variance	$2,100 U

What is the Over/under Allocated MO for Variable MO? ______________

What is the Over/under Allocated MO for Fixed MO? ___________________

1. Prepare journal entries that would be made at the end of each month relating to the above variances.(8 Marks)