The Bartlesville plant of Harmon Company produces an industrial chemical. at the beginning of the year, the Bartlesville plant had the following standard cost sheet:

Direct material: (10 pounds @ $1.60) $16.00

Direct labor: (0.75 hours @ $18.00) $13.50

Variable overhead: (0.75 @ $4.00) $3.00

Fixed overhead: (0.75 @ $3.00) $2.25

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Standard cost per unit $34.75

The Bartlesville plant computes its overhead rates using practical volume, which is 72,000 units. The actual results for the year are as follows:

a. Units produced: 70,000.

b. Direct materials purchased: 744,000 pounds @ $1.50 per pound.

c. Direct materials used: 736,000 pounds.

d. Direct labor: 56,000 hours @ $17.90 per hour.

e. Fixed overhead: $214,000

f. Variable overhead: $175,400

Required:

1. Calculate all the following variances: (MUST show work)

a. Direct materials price and efficiency variances

b. Direct labor price and efficiency variances.

c. Variable overhead price and efficiency variances.

d. Fixed overhead price and efficiency variances.

2. Record all the necessary journal entries for:

a. Materials purchases.

b. Materials used in production.

c. Direct labor costs incurred in production.

d. Actual variable overhead costs incurred.

e. Variable overhead costs applied.

f. Actual fixed overhead costs incurred.

g. Fixed overhead costs applied.

h. Recognition of variable overhead variances.

i. Recognition of fixed overhead variances.

j. Closing of all the variance accounts