s predetermined overhead rate from ed annual output of 40,000 units Pratt, Inc..,uses a standard costing system and develops its the annual flexible budget. The budget is based on an requiring total 160,000 budgeted direct labor hours. The cn0o, of which0 direct labor hours. Annual variable overhead. A total of 30,000 units were produced durtinsre total $1.1 direct labor hours. Actual overhead 12. 80,000 is 100,000 of costs total $1.280,000, the year which $320,000 were variable overhead costs. costs incurred for the year were to (1) Compute the variable overhead spending and efficieney 2) Compute the fixed overhead budget and volume variances. Indicate whether the variances are favorable (F or unfavorable (U). 3) For the case above, prepare journal entries for the following [8 pointsl: a) Application of overhead to production. (b) Incurrence of actual overhead. ecognition of overhead variances. d) Closing out of overhead variances