Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations:

Standard variable overhead rate $ 2.95 per direct labor-hour Actual output 26,350 units Actual direct labor-hours used 35,400 Standard direct labor-hours 1.5 per unit Actual direct labor cost incurred $ 909,000 Standard direct labor-hour rate $ 40 Actual variable overhead incurred $ 115,000 Actual units sold 21,260 units

Volte never has any work-in-process inventories and began the year with no finished goods inventory.

Required:

a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period?

c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances.

d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances.