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Overhead Variances, Four - Variance Analysis, Journal Entries Laughlin, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical

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Overhead Variances, Four-Variance Analysis, Journal Entries
Laughlin, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical
capacity for a year is defined as 1,000,000 units requiring 200,000 standard direct labor hours. Budgeted overhead for the year is
$750,000, of which $300,000 is fixed overhead. During the year, 900,000 units were produced using 190,000 direct labor hours.
Actual annual overhead costs totaled $800,000, of which $294,700 is fixed overhead.
Required:
Calculate the fixed overhead spending and volume variances.
Fixed Overhead Spending Variance
Calculate the variable overhead spending and efficiency variances.
Variable Overhead Spending Variance
$
Variable Overhead Efficiency Variance
$
Prepare the journal entries that reflect the following:
a. Assignment of overhead to production
b. Recognition of the incurrence of actual overhead
c. Recognition of overhead variances
d. Closing out overhead variances, assuming they are not material
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