Adcock Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.

Normal capacity for the month was 4,200 machine hours. During January, the following transactions applicable to Job No. 12 occurred.1. Purchased 6,250 pounds of raw materials on account at $1.06 per pound.2. Requisitioned 6,250 pounds of raw materials for Job No. 12.3. Incurred 2,100 hours of direct labor at a rate of $7.75 per hour.4. Worked 2,100 hours of direct labor on Job No. 12.5. Incurred manufacturing overhead on account $25,800.6. Applied overhead to Job No. 12 on basis of standard machine hours allowed.7. Completed Job No. 12.8. Billed customer for Job No. 12 at a selling price of $70,000.9. Incurred selling and administrative expenses on account $2,000.Instructions(a) Journalize the transactions.(b) Post to the job order cost accounts.(c) Prepare the entry to recognize the total overhead variance.(d) Prepare the January 2010 income statement formanagement.

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Direct materials Direct labor Overhead 3 pounds at $1.00 per pound 1 hour at $8.00 per hour 2 hours (variable S$4.00 per machine hour; fixed $2.25 per machine hour) $ 3.00 12.50 Standard cost per unit $23.50