The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials,

direct labor, and manufacturing $($factory$)$ overhead. The firm traces all direct costs to products, and it assigns

overhead cost to products based on direct labor hours.

The company budgeted $$13,570$ variable factory overhead cost, $$89,700$ for fixed factory overhead cost and $2,300$ direct

labor hours $($its practical capacity$)$ to manufacture $4,600$ pairs of boots in March.

The factory used $3,000$ direct labor hours in March to manufacture $4,500$ pairs of boots and spent $$16,100$ on variable

overhead during the month. The actual fixed overhead cost incurred for the month was $$92,000.$

Required:

Compute the fixed overhead spending $($budget$)$ variance and the production volume variance for March and indicate whether each

variance is favorable $(F)$ or unfavorable $(U).$

Compute the fixed overhead flexible$-$budget variance for March. Is this variance favorable $($F$)$ or unfavorable $($U$)?$

Provide the appropriate journal entry to record the fixed overhead spending variance and the appropriate journal entry to record the

production volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.

Complete this question by entering your answers in the tabs below.

Provide the appropriate journal entry to record the fixed overhead spending variance and the appropriate journal entry to record the

production volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. $($If

no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

A

B

Record the fixed overhead spending variance.

Note: Enter debits before credits.