In Rex Company, factory overhead is charged to production in Department A on the basis of the standard machine hours allowed for actual production. The following data relate to the results of operations for a recent month:
Normal capacity in machine hours 15,000
Standard machine hours allowed for actual production 12,000
Actual machine hours 13,000
The factory overhead rate based on normal capacity machine hours is as follows:

Actual factory overhead incurred during the month totaled $88,800. The company maintains two factory overhead accounts: Factory Overhead Control and Applied Factory Overhead.
Required:
Prepare journal entries to record each of the following:
The factory overhead applied to production during the period
The closing of Applied Factory Overhead
The closing of Factory Overhead Control into two factory overhead variance accounts

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Variable overhead Fixed overhead Total factory overhead S 37,500 67 500 $105.000 +15,000ousS2.50 15,000 hours 450 -15.000 hours =$7.00