Required information

[The following information applies to the questions displayed below.]

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 $12,600 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,250 direct labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March.

The factory used 3,100 direct labor hours in March to manufacture 4,400 pairs of boots and spent $16,200 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,400.

Required:

1. 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).

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

3. 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.

*Please do both parts of the journal entry in #3*