using the solutions to note 10 49 quot review problem 10 5 quot and note 10 67 quot 1571517

Using the solutions to Note 10.49 “Review Problem 10.5” and Note 10.67 “Review Problem 10.8”, prepare a journal entry to record variable and fixed manufacturing overhead applied to products.

Review Problem 10.5

Carol’s Cookies expected to use 0.20 direct labor hours to produce 1 unit (batch) of product, and the variable overhead rate is $3.50 per hour. Actual results are in for last year, which indicates 390,000 batches of cookies were produced and sold. The company’s direct labor workforce worked 97,500 hours, and variable overhead costs totaled $360,000.

1. Calculate the variable overhead spending and efficiency variances using the format shown in .

2. Suggest several possible reasons for the variable overhead spending and efficiency variances.

Review Problem 10.8

This review problem is based on the budget information presented inreview problems and variance analysis information presented in review problems. The following information is for Carol’s Cookies:

Calculate the fixed overhead spending and production volume variances using the format shown in