Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following:

Actual fixed manufacturing overhead $ 180,000

Actual variable manufacturing overhead 132,000

Applied fixed manufacturing overhead 200,000

Applied variable manufacturing overhead 126,000

Production volume variance 10,000 F

Variable overhead efficiency variance 4,000 F

Five percent of this period's production has not been sold. There are never any work-in-process inventories.

Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.