Marigold, Inc. is known throughout the world for its H20-X high-capacity water pump, used in irrigation systems. The company uses a standard costing system, and the pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 100,800 direct labor hours per month Standard Standard Quantity Standard Cost Price $5 per pound 14 pounds $70 $9 per DLH 4 DLH 36 Direct materials Direct labor Variable overhead Fixed overhead $8 per DLH 4 DLH 32 $5 per DLH 4 DLH 20 $158 During the month of September, the company produced 22,000 of the 25,200 pumps that had been scheduled for production in the budget. The company used 359,800 pounds of material during September. The direct labor payroll for the month was $948.900 for 94,890 direct labor hours. Variable overhead costs were 5748,920, faxed overhead costs were $557,100. The company's purchasing agent signed a new supply contract that resulted in purchases of 500,000 pounds of direct materials at a price of $2,300,000. (a) Prepare the journal entries to record the purchase and use of direct materials during September. (Credit account titles are outomatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1 Raw Materials inventory Accounts Payable Direct Materials Price Vartance (To record the purchase of material) Direct Materials Quantity Variance TODAS 2 Work in Process Inventory Raw Materials inventory (b) Prepare the journal entry to record the use of direct labor during September. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Work In Process loventory Direct Labor Efficiency Variance Direct Labor Rate Variance Wapes Payable (To record direct labor) (c) Prepare the journal entry to record actual variable overhead costs incurred. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Manufacturing Overhead Accounts Payable (To record actual variable manufacturing overhead) (d) Prepare the journal entry to record the application of variable overhead to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Work in Process inventory Debit Credit Manufacturing Overhead (To record applied variable manufacturing overhead) te) Prepare the journal entry to record actual fixed overhead costs incurred. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Manufacturing Overhead Accounts Payable (To record actual fixed manufacturing overhead) Prepare the journal entry to record the application of fixed overhead to production, (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Work in Process Inventory Credit Manufacturing Overhead (To record applied fixed manufacturing overhead (se) Prepare the journal entries to record the variable and fixed overhead variances. (Credit account titles are automatically indented when amouht is entered. Do not indent manually) No. Account Titles and Explanation Debit Credit Variable Overhead Efficiency Variance 1 Manufacturing Overhead Variable Overhead Spendine Varianen (To record variable overhead variances) 2 Fbad Overhead Spending Variance (e) Prepare the journal entries to record the variable and fixed overhead variances. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit No. Account Titles and Explanation 1 Variable Overhead Efficiency Variance Manufacturing Overhead Variable Overhead Spending Variance (To record variable overhead variances) LITE 2 Fixed Overhead Spending Variance INTI Feed Overhead Volume Variance Manufacturing Overhead To record fixed overhead variances) (h) Prepare the Journal entry to close all variances to Cost of Goods Sold. (Credit account titles are automatically indented when amount is enterad. Do not indent manually) Account Titles and Explanation Debit Credit Cost of Goods Sold Direct Materials Price Variance Variable Overhead Spending Variance Direct Labor Rate Variance Direct Materials Quantity Variance (H) Prepare the journal entry to close all variances to Cost of Goods Sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Cost of Goods Sold Direct Materials Price Variance Variable Overhead Spending Variance Direct Labor Rate Variance Direct Materials Quantity Variance Direct Labor Effidency Variance Variable Overhead Efficiency Variance Fred Overhead Spending Variance Foed Overhead Volume Variance To close variances to Cost of Goods Sold)