Test Company uses a standard costing system.

The company developed the following standard cost sheet for one of its products.

Direct materials (6 lbs. @ $5 per lb.) $30

Direct labor (1.5 hours @ $10 per hour) 15

Variable overhead (1.5 hours @ $4 per hour) 6

Fixed overhead (1.5 hours @ $2 per hour assuming 17,000 hours) 3

During the year, Test Company recorded the following actual results.

Units produced 12,000

Direct materials (71,750 lbs. purchased and used) $365,925

Direct labor (17,900 hours) 182,580

Variable overhead 69,000

Fixed overhead 33,000

1. The journal entry to record the fixed overhead cost applied to production would include

A) credit to fixed overhead volume variance for $2,000

B) credit to overhead control for $36,000

C) debit to work-in-process inventory for $33,000

D) credit to fixed overhead spending variance for $3,000

2. The journal entry to record the actual fixed overhead cost would include

A) credit to fixed overhead spending variance for $1,000

B) debit to fixed overhead efficiency variance for $1,000

C) debit to overhead control for $33,000

D) debit to work-in-process inventory for $36,000