THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 14. 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

2. The journal entry to record the variable overhead cost applied to production would include

A. A credit to variable overhead efficiency variance for $2,700

B.A debit to overhead control for $69,000

C.A debit to variable overhead spending variance for $2,600

D.A debit to work-in-process inventory for $72,000