Refer to the variances you calculated in conjunction with 15-21 and to the information i...

Refer to the variances you calculated in conjunction with 15-21 and to the information in 15-16 and 15-18. Give the appropriate journal entries to record: (a) actual overhead costs for the year and applied overhead costs for the year (both variable and fixed), and (b) the three manufacturing cost variances calculated in 15-21.

Reference: 15-16

Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine-hours per year, which represents 25,000 units of output. Annual budgeted fixed overhead costs are $250,000 and the budgeted variable overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine-hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine-hours. Actual fixed overhead costs for the year amounted to $245,000 while the actual variable overhead cost per unit was $3.90. What was (a) the fixed overhead spending (budget) variance for the year, and (b) the fixed overhead production volume variance for the year?

Reference: 15-18

Refer to the data in 15-16. Provide the correct summary journal entries for actual and applied overhead costs (both variable and fixed) for the year. Assume that the company uses a single account, Factory Overhead, to record both actual and applied overhead. Also, assume that the only variable overhead cost was electricity and that actual fixed overhead consisted of depreciation of $150,000 and supervisory salaries of $95,000.

Reference: 15-21

Refer to the information in 15-16. Calculate and label the following overhead variances for the year: (a) total overhead cost variance, (b) total flexible-budget variance, and (c) fixed overhead production volume variance.