Standard Costs for Overheads and Overhead Variances Virtual Pet Company makes two products- The Virtual Parakeet and the Virtual Slug. The Company had the following budget for 20X6: Parakeets Slugs units to be produced and sold 2,000,000 1,000,000 direct material costs per unit $1.50 $1.05 direct labor costs per unit $0.45 $0.25 .20 .10 machine hours per unit Overhead Budget fixed overhead: variable overhead $4,500,000 $5/machine-hour The company uses a standard costing system and allocates overhead based on standard machine hours allowed. Suppose at the end of the year the firm determined that actual fixed overhead incurred amounted to $4,400,000 and actual total variable overhead incurred amounted to $2,300,000. Also, suppose that the firm actually used 470,000 machine hours in the production and sales of 1,500,000 units of Virtual Parakeets and 1,500,000 units of Virtual Slugs. Calculate: 1. the standard (absorption) cost of a virtual parakeet 2. the fixed overhead spending variance 3. the production volume variance 4. the overhead efficiency variance 5. the variable overhead spending variance 6. the total under or over allocated overhead For U F or U F or U F or U Over Under 7. Assume the firm has separate accounts for Fixed Manufacturing Overhead Control, Variable Manufacturing Overhead Control, Fixed Manufacturing Overhead Allocated and Variable Manufacturing Overhead Allocated. Give the journal entry that records all the overhead variances and closes all the overhead accounts