Transcribed image text : requiring total 160.000 budgeted direct labor hours. The company applies overhead based on 25. Prebe, uses a standard costing system and develops its predetermined overhead code turom the annual flexible budget. The budget is based on an expected annual output of 40,000 on variable overhead. A total of 30,000 units were produced during the year, using 100.000 is direct labor hours. Actual overhead costs incurred for the year were total $1,100,000, of which $320,000 were variable overhead costs. (1) Compute the variable overhead spending and efficiency variances. Indicate whether the variances are favorable (P) or unfavorable 8). Show your computation for full credit 16 points (2) Compute the fixed overhead budget and volume variances. Indicate whether the variances are favorable (F) or unfavorable (U). Show your computation for full credit! (6 points) (3) For the case above, prepare journal entries for the following 5 points): (a) Incurrence of actual overhead. (b) Application of overhead to production. (c) Recognition of overhead variances. (d) Closing out of overhead variances