Mantuach Printing is a highly automated printing company. Mantuach allocates factory overhead based on machine hours. During a recent month, 310 machine hours were worked. These machine hours resulted in the production of 30,000 books. The production standards have an objective of 100 books per machine hour. Facts about budgeted and actual factory overhead are as follows:
	Actual total variable factory overhead for the month was $250,000.
	Variable factory overhead was estimated and applied at $800 per machine hour.
	Actual total fixed factory overhead for the month was $120,000.
	Fixed factory overhead was estimated and applied at $450 per machine hour.
Mantuach based the fixed overhead allocation rates on an assumed production level of 28,000 books.
(1)	Calculate the overhead variances.
(2)	Prepare journal entries to apply factory overhead to production, and record the related variances.

Worksheet for part (1)

(a)	Variable overhead variances
	Actual hours
	Actual cost of variable overhead
	Actual output
	Standard hours per unit (1/100)
	Standard hours to achieve output
	Standard rate per hour
	Standard cost of variable overhead
	Actual use at standard cost
	Total variable overhead variance
	Variable overhead spending variance
	Variable overhead efficiency variance
(b)	Fixed overhead variances
	Actual cost of fixed overhead
	Actual output
	Standard hours per unit (1/100)
	Standard hours to achieve output
	Standard rate per hour
	Standard cost of fixed overhead
	Budgeted fixed overhead
	Total fixed overhead variance
	Fixed overhead spending variance
	Fixed overhead volume variance

Worksheet for part (2)

GENERAL JOURNAL
Date	Accounts		Debit	Credit