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What is the total variable overheed variance? $ 3. Break down the total fixed overhead variance into a spending varlance and a volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Now assume that Plimpton's cost accounting system reveals only the total actual overhead. In this case, a three-wariance analysis can be performed. Using the relationships betweon a three- and four-variance analysis, indicate the values for the three overhed wariances. 6. Prepare journal entries (1) to apply overhead to production, (2) to record the actual dverthead costs incurred, (3) to record the variable and foved overhead variances, and (4) to close the variance accounts at the end of the yeac Assume variances are closed to Cost of Gocoss Sold, If an amount box does nok require an entry, levve it blank or enter " 0". a more Check My Work uses remaining. Overhead Variances, Four-Variance Analysis, Journal Entries Laughlin, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical capacity for a year is defined as 1,000,000 units requiring 200,000 standard direct labor hours. Budgeted overhead for the year is $750,000, of which $300,000 is fixed overhead. During the year, 900,000 units were produced using 190,000 direct labor hours. Actual annual overhead costs totaled $800,000, of which $294,700 is fixed overhead. Required: 1. Calculate the fixed overhead spending and volume variances. 2. Calculate the variable overhead spending and efficiency wariances. 3. Prepare the journat entries that reflect the following: a. Assignment of overhead to production b. Recognition of the incurrence of actual overhead c. Recognition of overhead variances d. Closing out overhead variances, assuming they are not material Note: Close the variances with a debit balance first. For compound entries, if an amount box does not require. an entry, leave it blank or enter 0