Refer to Problem 8-29.

In exercise

REQUIRED
1. Prepare journal entries for variable and fixed manufacturing overhead (you will need to calculate the various variances to accomplish this).
2. Overhead variances are written off to the Cost of Goods Sold (COGS) account at the end of the fiscal year. Show how COGS is adjusted through journal entries.

Manufacturing Overhead Actual Results S 76,608 350,208 Flexible Budget $76,800 348,096 Amount Allocated Variable Fixed $ 76,800 376,320 Budgeted number of output units: 888 Planned allocation rate: 2 machine-hours per unit Actual number of machine-hours used: 1,824 Static-budget variable manufacturing overhead costs: $71,040