Michael Company uses job-order costing. The company has gathered the following data:

Direct materials purchased for cash $60,000

Direct materials requisitioned $50,000

Direct labor costs incurred $90,000

Factory overhead costs incurred $60,000

Cost of goods completed $180,000

Cost of goods sold $170,000

Sales for cash $300,000

Factory overhead applied ?

Factory overhead costs are applied at 90% of direct labor costs.

Required:

1. A) Prepare the required journal entries for the above transactions.
2. B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.