Question $2$

The Teala Company uses standard costing in its manufacturing plant for auto parts. Standard

machine time is $6\mathrm{.}5$ machine hours per unit. The standard cost of a particular auto part, based on

a denominator level of $4,500$ output units per year, included variable manufacturing overhead at

$$8$ per hour. Budgeted fixed overhead was $$351,000.$ Actual output produced was $4,400$ units.

Variable manufacturing overhead incurred was $$217,000.$ Fixed manufacturing overhead

incurred was $$373,000.$ Actual machine$-$hours were $28,400.$

Required:

$1.$Calculate the following variances in the table. Detailed computations are required.

$2.$Prepare journal entries for variable and fixed manufacturing overhead costs and variances;

write off these variances to cost of goods sold.