The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead for June 2020.

Required

1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances  using the columnar approach in Exhibit 8-4.

2. Prepare journal entries for Principles’ June 2020 variable and fixed manufacturing overhead costs and variances; write off these variances to cost of goods sold for the quarter ending June 30, 2020.
3. How does the planning and control of variable manufacturing overhead costs differ from the planning  and control of fixed manufacturing overhead costs?

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Number of centrifuges assembled and sold Hours of assembly time Variable manufacturing overhead cost per hour of assembly time Variable manufacturing overhead costs Fixed manufacturing overhead costs Actual Results 225 360 11,933 12,180 Static-Budget Amounts 110 32 10,780