Beachfront Corp. determines that the following variances arose in production during October:
________________Variance_________________________________Amount
Materials price..............................................$2,400 Unfav.
Materials quantity...............................................1,000 Fav.
Labor efficiency.....................................................500 Fav.
Labor rate...............................................................750 Fav.
Factory overhead efficiency..............................850 Unfav.
Factory overhead spending.............................2,100 Unfav.
Materials purchases totaled $90,000, while $77,000 in materials were taken from inventory for use in production.
Labor payroll totaled $144,000, and actual overhead incurred was $256,000.
REQUIRED:
Prepare journal entries to record the above variances.