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The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing $($factory$)$ overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours.

The company budgeted $$10,120$ variable factory overhead cost, $$94,300$ for fixed factory overhead cost and $2,300$ direct labor hours $($its practical capacity$)$ to manufacture $4,600$ pairs of boots in March.

The factory used $4,300$ direct labor hours in March to manufacture $4,400$ pairs of boots and spent $$17,400$ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $$97,900.$

Required:

Compute the fixed overhead spending $($budget$)$ variance and the production volume variance for March and indicate whether each variance is favorable $(F)$ or unfavorable $(U).$

Compute the fixed overhead flexible$-$budget variance for March. Is this variance favorable $($F$)$ or unfavorable $($U$)?$

Provide the appropriate journal entry to record the fixed overhead spending variance and the appropriate journal entry to record the production volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

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Compute the fixed overhead spending $($budget$)$ variance and the production volume variance for March and indicate whether each variance is favorable $(F)$ or unfavorable $($U$).$

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