Rondell Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. The actual results were:

Standard direct labour hours allowed		9,000
Actual direct labour hours		10,000
Fixed overhead		$190,000
Variable overhead		$185,000

a)Journalize the incurrence of the overhead costs and the application of overhead to the job, assuming a standard cost accounting system is used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

b)Prepare the adjusting entry for the overhead variances. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit Manufacturing Overhead 375000 Cash, Accounts Payable 375000 (To record incurrence of overhead.) Work in Process Inventory Manufacturing Overhead (To record application of overhead.) Account Titles and Explanation Debit Credit Overhead Volume Variance Overhead Budget Variance Manufacturing Overhead