1. The following information relates to Joplin Company for the period just ended:

Standard variable overhead rate per hour	$1
Standard fixed overhead rate per hour	$2
Planned monthly activity	40,000 machine hours
Actual production completed	82,000 units
Standard machine processing time	Two units per hour
Actual variable overhead	$37,000
Actual total overhead	$121,000
Actual machine hours worked	40,500

The company uses machine hours to apply variable and fixed overhead

Required:

1. Calculate the variable overhead variances and the fixed overhead variances.
2. Record the journal entries when the variances are recognized.
3. Record the journal entries when the variances are disposed at the end of the period.