Practice! Sebastian Company manufactures electrical switches and uses standard costing to carry all inventories at standard. Standard manufacturing overhead costs per switch are based on direct labor hours: Variable overhead (5 hours@ $12 per direct manufacturing labor hour) $60 Fixed overhead (5 hours @ $15* per direct manufacturing labor hour) 75 Total overhead per switch $135 Based on capacity of 200,000 direct manufacturing labor hours per month. The following information is available for the month of December: 46,000 switches were produced although 40,000 switches were scheduled to be produced. 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. Variable manufacturing overhead costs were $2,750,000. Fixed manufacturing overhead costs were $3,050,000. Calculate all variable overhead variances for December and record the journal entries. Ref Accounts Debit Credit