Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate whether the variances are favourable or unfavourable. (10 marks)

(b) Provide the journal entry (or entries) that close the variances calculated in (a) above to cost of goods sold (COGS). Narration is not required. (3 marks)

MANUFACTURING OVERHEAD Question 4 VARIANCES FLEXIBLE BUDGET (13 MARKS) The Parker Corporation is a manufacturer of generic laptops. Fixed and variable manufacturing overheads are allocated to each laptop using budgeted assembly hours. Budgeted assembly time is 2 hours per laptop. Exhibit 5 shows the budgeted amounts and actual results related to overhead for June 2019. Exhibit 5 Manufacturing Overhead at Parker Corporation for June 2019 Actual Results Static (Master) Budget 110 Not disclosed $32/hour Number of laptops assembled and sold 225 Hours of assembly time 360 hours Variable manufacturing overhead cost per Not disclosed assembly hour Variable manufacturing overhead costs $11,933 Fixed manufacturing overhead costs $12,180 Not disclosed $10,780