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 $$9,600$ variable factory overhead cost, $$92,000$ for fixed factory overhead cost and $2,000$ direct

labor hours $($its practical capacity$)$ to manufacture $4,000$ pairs of boots in March.

The factory used $3,700$ direct labor hours in March to manufacture $3,800$ pairs of boots and spent $$16,800$ on variable

overhead during the month. The actual fixed overhead cost incurred for the month was $$95,000.$

Required:

Compute the variable overhead spending $($rate$)$ variance, the variable overhead efficiency variance, and the total variable overhead

variance for March and state whether each variance is favorable $(F)$ or unfavorable $(U).$

Provide the appropriate journal entry to record the variable overhead spending $($rate$)$ variance and a second entry to record the

variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record

overhead costs.

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Compute the variable overhead spending $($rate$)$ variance, the variable overhead efficiency variance, and the total variable

overhead variance for March and state whether each variance is favorable $(F)$ or unfavorable $(U).$