PA9-4 Preparing Journal Entries to Record Fixed Manufacturing Overhead Costs, Variances [LO 9-S2]

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:

	Standard Quantity		Standard Price (Rate)			Standard Unit Cost
Direct materials (clay)	1.5	lbs.	$	1.60	per lb.	$	2.40
Direct labor	1.5	hrs.	$	12.00	per hr.		18.00
Variable manufacturing overhead (based on direct labor hours)	1.5	hrs.	$	1.20	per hr.		1.80
Fixed manufacturing overhead ($250,000 100,000 units)							2.50

Barley Hopp had the following actual results last year:

Number of units produced and sold		110,00
Number of pounds of clay used		178,200
Cost of clay	$	267,300
Number of labor hours worked		150,000
Direct labor cost	$	2,025,000
Variable overhead cost	$	200,000
Fixed overhead cost	$	270,000

Required: Prepare the journal entry to record Barley Hopps fixed manufacturing overhead costs and related variances for last year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)