Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 92,000 tires for $40 each. Budgeted production was 100,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2 Direct labor: 0.4 hours at $18 Variable production overhead: 0.18 machine-hours at $10 per hour Total variable costs Fixed production overhead costs: Monthly budget $1,350,000 Fixed overhead is applied at the rate of $15.00 per tire. Actual production costs: $ 8.00 7.20 1.80 $17.00 Direct materials purchased and used: 384,000 pounds at $1.80 Direct labor: 35,200 hours at $18.40 $ 691,200 647,680 Variable overhead: 17,280 machine-hours at $10.20 per hour Fixed overhead 176,256 1,360,000 Required: a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions. b. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to cost of goods sold at the end of the operating period. A 1 Work-in-process inventory 736,000 Materials efficiency variance 32,000 Materials price variance 76,800 691,200 Accounts payable B 2 Work-in-process inventory 662,400 Direct labor price variance 14,080 Direct labor efficiency variance 28,800 Wages payable 647,680 C 3 Work-in-process inventory Variable overhead (applied) 165,600 165,600 D 4 Variable overhead (actual) 176,256 Miscellaneous payables and inventory accounts 176,256 E 5 Variable overhead (applied) Variable overhead price variance Variable overhead efficiency variance Variable overhead (actual) 165,600 3,456 7,200 176,256 F 6 Work-in-process inventory Fixed overhead (applied) 1,380,000 1,380,000 G 7 Fixed overhead (actual) 1,360,000 Miscellaneous payables and inventory accounts 1,360,000 H 8 Fixed overhead (applied) 1,380,000 Fixed overhead price variance 10,000 Fixed overhead production volume variance 30,000 Fixed overhead (actual) 1,360,000 9 Finished goods inventory 2,954,000 Work-in-process inventory 2,954,000 J 10 Accounts receivable Sales revenue 3,680,000 3,680,000 K 11 Cost of goods sold Finished goods inventory 2,954,000 2,954,000 L 12 Fixed overhead production volume variance 30,000 Materials price variance 76,800 Direct labor efficiency variance 28,800 Materials efficiency variance 32,000 Direct labor price variance 14,080 Variable overhead price variance 3,456 Variable overhead efficiency variance 7,200 Fixed overhead price variance 10,000 Cost of goods sold 68,864 Journal entry worksheet < A Description F G H J K L M Note: Enter debits before credits. Event 13 General Journal Debit Credit Record entry Clear entry View general journal