3. The Wolf Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour. The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours) and $4.80 for overhead. The company's variable overhead costs are $0.50 per direct labor hour. Production information for the month of March follows:

Number of units produced	4,500
Materials purchased (13,300 yards)	$61,600
Materials used in production (yards)	13,300
Variable overhead costs incurred	$4,380
Fixed overhead costs incurred	$20,400
Direct labor cost incurred ($6.50/hour)	$57,750

Variances

Materials price variance	$3,080U
Materials efficiency variance	880F
Labor price variance	2,310U
Labor efficiency variance	1,440U
Variable OH price variance	240F
Variable OH efficiency variance	120U
Fixed OH price variance	1,400U
Fixed OH volume variance	1,900U

Required: In the chart above, the fixed overhead variances are given. Provide the calculations to prove those numbers.

Fixed OH price variance:

Fixed OH volume variance:

Record journal entries for the following production transactions (see descriptions in the journal). Note-the variances are computed for you in the chart above.

1.Record direct materials variances, 2.Record direct labor variances, 3.Record the actual variable and fixed overhead incurred. (this is not in your demonstration notes) 4. Record the variable and fixed overhead applied to production. (this is not in your demonstration notes) 5. Record manufacturing overhead variances, 6. Transfer finished goods to CGS, 7. Record Cost of Goods Sold-assume all production was sold for $235,000., 8.Record the closing entry for the variance accounts