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Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as

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Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,000 machine hours per year, which represents 25,500 units of output. Annual budgeted fixed factory overhead costs are $255,000 and the budgeted variable factory overhead cost rate is $2.30 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,800 units, which took 40,000 machine hours. Actual fixed factory overhead costs for the year amounted to $249,400 while the actual variable overhead cost per unit was $2.20. Based on the information provided above, prepare the appropriate journal entries to record (a) actual factory overhead costs for the year, (b) the applied factory overhead costs for the year (both variable and fixed), and (c) the total flexible-budget variance and the production volume variance for the period. Assume that the company uses a single account, Factory Overhead, to record both actual and applied factory overhead. Also, assume that the only variable overhead cost was electricity and that actual fixed overhead consisted of depreciation of $154,000 and supervisory salaries of $95,400 Finally, assume that both electricity expense and the supervisory salaries expense have been incurred but not yet paid (t.e., both are current liabilities). (Do not round Intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for o transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the actual overhead costs, Note: Enter debits before credits General Journal Debit Transaction Credit

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