Simpson Manufacturing has the following standard cost sheet for one of its products:

Total

Direct materials $5$ pounds at $$2$ per pound $ $10$

Direct labor $2$ hours at $$25$ per hour $50$

Variable factory overhead $2$ hours at $$5$ per hour $10$

Fixed factory overhead $2$ hours at $$20$ per hour $40$

Cost per unit $ $110$

The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of $400$ units of the product.

Simpson has the following actual operating results for the year just completed:

Units manufactured $374$

Direct materials purchased and used $1,870$ pounds $ $20,570$

Direct labor incurred $820$ hours $22,140$

Variable factory overhead incurred $5,248$

Fixed factory overhead incurred $15,800$

Before closing the periodic accounts, the $($standard cost$)$ entries in selected accounts follow:

Account Debit $($total$)$ Credit $($total$)$

Work$-$in$-$process inventory $ $174,000$ $ $141,640$

Finished goods inventory $141,640118,690$

Cost of goods sold $118,690$

Required:

$1.$ Determine for the period the following items:

a$.$ Flexible budget for variable factory overhead cost based on output for the period.

b$.$ Total variable overhead cost applied to production during the period.

c$.$ Total budgeted fixed factory overhead cost.

d$.$ Total fixed factory overhead cost applied to production during the period.

$2.$ Compute the following factory overhead cost variances using a four$-$variance analysis:

a$.$ Total variable overhead cost variance.

b$.$ Variable overhead spending variance.

c$.$ Variable overhead efficiency variance.

d$.$ Total underapplied or overapplied variable overhead.

e$.$ Fixed overhead spending variance.

f$.$ Fixed overhead production volume variance.

g$.$ Total fixed overhead cost variance.

h$.$ Total underapplied or overapplied fixed overhead.

$3.$ Compute the following factory overhead cost variances using three$-$variance analysis:

a$.$ Overhead spending variance.

b$.$ Overhead efficiency variance.

c$.$ Fixed overhead production volume variance.

$4.$ Compute the total overhead flexible$-$budget variance and the fixed overhead production volume variance using a two$-$variance analysis.

$5.$ Using a single overhead account $($e$.$g$.,$ Factory Overhead$),$ make proper journal entries for:

a$.$ Incurrence of factory overhead costs.

b$.$ Application of factory overhead costs to production.

c$.$ Identification of overhead variances assuming that the firm uses the four$-$variance analysis identified in requirement $2.$

d$.$ Close all factory overhead cost items and their variances of the period if:

$(1)$ The firm closes all variances to the Cost of Goods Sold account.

$(2)$ The firm prorates variances to the inventory accounts and the Cost of Goods Sold account.