Dunlap Company produces 3-inch binders at its Killeen plant. The following information is available for the year:

Production:

Budgeted ..........................100,000 binders

Actual........... 98,000 binders

Standard costs:

Direct labor .........5 DLH per binder @ $12 per hour

Variable overhead ........5 DLH per binder @ $6 per hour

Actual costs:

Direct labor .........47,040 DLH @ $11.90 per hour

Variable overhead........ $282,000

Required

a. Prepare the journal entry to record actual variable overhead costs incurred.

b. Prepare the journal entry to record the application of variable overhead to production.

c. Prepare the journal entry to record the variable overhead spending and efficiency variances.