Presented below is a flexible manufacturing overhead budget for Ayayai Manufacturing, which manufactures fine timepieces: Activity Index: Standard direct labor hours 2,820 3,220 3,620 4,020 Variable costs Indirect materials $ 5,640 $ 6,440 $ 7,240 $ 8,040 Indirect labor 3,243 3,703 4,163 4,623 Utilities 7,332 8,372 9,412 10,452 Total variable 16,215 18,515 20,815 23,115 Fixed costs Supervisory salaries 1,210 1,210 1,210 1,210 Rent 2,815 2,815 2,815 2,815 Total fixed 4,025 4,025 4,025 4,025 Total costs $ 20,240 $ 22,540 $ 24,840 $ 27,140 The company applies the overhead on the basis of direct labor hours at $7.00 per direct labor hour and the standard hours per timepiece is 1/2 hour each. The company's actual production was 5,440 timepieces with 2,720 actual hours of direct labor. Normal capacity is 3,220 hours. Actual overhead was $20,400. Prepare the entries for manufacturing overhead during the period and the entry to recognize the overhead variances at the end of the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) No. Account Titles and Explanation 1. Debit Credit 2. (To record overhead incurred) 3. (To assign overhead to production) (To recognize overhead variances)