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The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing overhead. The firm traces all direct costs to products, and it assigns overhead based on direct labor hours.

The company budgeted $11,925 variable overhead and 2,250 direct labor hours to manufacture 4,500 pairs of boots in March.

The factory used 3,400 direct labor hours in March to manufacture 4,100 pairs of boots and spent $16,500 on variable overhead during the month.

For March the Platter Valley factory of Bybee Industries budgeted $96,750 of fixed overhead. Its practical capacity is 2,250 direct labor hours per month (to manufacture 4,500 pairs of boots).

The actual fixed overhead incurred for the month was $99,450.

Required:

1.

Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable overhead for March.

2.	Provide appropriate journal entries to record the variable overhead spending and efficiency variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)