Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as $50,000$ machine hours per year, which represents $25,000$ units of output. Annual budgeted fixed factory overhead costs are $$250,000$ and the budgeted variable factory overhead cost rate is $$4$ 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 $20,000$ units, which took $41,000$ machine hours. Actual fixed factory overhead costs for the year amounted to $$245,000,$ while the actual variable overhead cost per unit was $$3\mathrm{.}90.$

Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold $($CGS$)$ using the following percentages: $10\%,20\%,$ and $70\%,$ respectively. Provide the proper journal entry to close out the manufacturing overhead variances for the year. Record the entry to close the variance accounts to Work in process inventory, Finished goods inventory, and Cost of goods sold.

Note: Enter debits before credits.

Work in process inventory

Transaction General Journal Debit Credit

$1$ Work in process inventory

Finished goods inventory

Cost of goods sold

Variable overhead spending variance