Please answer completely

Lulu Company has just finished its December 31, 2009 fiscal year. The company produced and sold 5,000 quilts. A total of 23,000 meters of material was purchased at a total cost of $86,250. Of this, 21,000 meters was used to produce the 5,000 quilts. Also, the company paid $31,320 to its labor force for 7,200 hours of work in 2009. Actual machine hours were 3,200 hours. Variable manufacturing overhead was $5,120 and fixed manufacturing overhead was $26,560. REQUIRED:

1. Prepare all variances for materials, labor, variable overhead and fixed overhead.

2. Using a T account, show the entries made to Manufacturing Overhead for the year. Determine the ending balance and whether it indicates over or under applied overhead.

3. Reconcile your answer to part 4 by comparing it to the overhead variances you determined. 4. Provide possible explanations for your variance results.