The Tolerances Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead for June 2017.

Data Table

	Actual	Static
The Tolerances Corporation (June 2017)	Results	Budget
Number of centrifuges assembled and sold	240	130
Hours of assembly time	264
Variable manufacturing overhead cost per hour of assembly time		$32.00
Variable manufacturing overhead costs	$8,864
Fixed manufacturing overhead costs	$13,860	$12,480

1.Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances. 2.Prepare journal entries for Tolerances' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 3.How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?

Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances. Begin by calculating the following amounts for the variable overhead. Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overhead Variable OH Now complete the table below for the fixed manufacturing overhead. Same Budgeted Lump Sum Actual Costs Regardless of Flexible Allocated Incurred Output Level Budget Overhead Fixed OH Requirement 2. Prepare journal entries for Tolerances' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the actual variable manufacturing overhead incurred. Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead allocated. Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead variances for the period. Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead variance write-off. Journal Entry Date Accounts Debit Credit Record the actual fixed overhead costs incurred. Journal Entry Date Accounts Debit Credit Record the fixed overhead costs allocated. Journal Entry Date Accounts Debit Credit Record the fixed overhead variances for the period. Journal Entry Date Accounts Debit Credit Record the fixed manufacturing overhead variance write-off. Journal Entry Date Accounts Debit Credit Requirement 3. How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs? Planning and control of manufacturing overhead costs has both a long-run and a short-run focus. The long-run focus involves Tolerances planning to and for the short-run focus to in the most efficient way. Planning and control of manufacturing overhead costs have primarily a long-run focus. It involves for a budgeted level of output. Tolerances makes of the key decisions that determine the level of overhead costs at the start of the accounting period