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SB $($Static$)$ The Platter Valley factory of Bybee Industries...

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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 $$15,000$ variable factory overhead cost, $$90,000$ for fixed factory overhead cost and $2,500$ direct labor hours $($its practical capacity$)$ to manufacture $5,000$ pairs of boots in March.

The factory used $2,700$ direct labor hours in March to manufacture $4,800$ pairs of bootst spent $$15,600$ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $$92,000.$

$($DLH $=$ Direct Labor Hours, FB $=$ Flexible Budget, $AQ=$ Actual Quantity, $SQ=$ Standard Quantity, $AP=$ Actual Price,$AH=$ Actual Hours, $SH=$ Standard Hours, and SP $=$ Standard Price$)$

Exercises $15-29($Static$)$ Variable Factory Overhead Variances; Journal Entries $[$LO $15-2,15-3]$

Required:

Compute the factory overhead flexible$-$budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable $($F$)$ or unfavorable $($U$).$

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

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Compute the factory overhead flexible$-$budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable $($F$)$ or unfavorable $($U$).$