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: 1. Calculate the fixed overhead spending and volume variances. Fixed Overhead Spending Variance $ Fixed Overhead Volume Variance $ 2. Calculate the variable overhead spending and efficiency variances. Variable Overhead Spending Variance Variable Overhead Efficiency Variance 3. 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 Note: Close the variances with a debit balance first. For entry, leave it blank or enter "O". a. 11 III III III III II1110 1111 II IIII I d