Activity Index: Standard direct labor hours Variable costs Indirect materials Indirect labor Utifities. Total variable Fixed costs Supervisory salaries Rent Total fixed Total costs The compary applies the overhead on the basis of direct labor hours at $7.00 per direct labor hour and the standard hours per timepiece is 1/2 hour each. The company's actual production was 6,120 timepleces with 3,060 actual hours of direct labor. Normal capacity is 3,560 hours. Actual overhead was $22,800. Prepare the entries for manufacturing overhead during the period and the entry to recognize the overhead variances at the end of the period. (Credit account tities are outomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entriex. Round answers to 0 decimal ploces as: 5,275 .) No. Account Titles and Explanation Debit Credit 1. (To record overhead incurred) 2. (To assign overhead to production) 3. (To recoonize owerhead variances) Your Answer Correct Answer (Used) Compute the controllable and volume overhead variances, Identify whether each variance is favorable or unfavorable. (Round rote values to 2 decimal places, es. 2.75 and finol answers to 0 decimal places, es. 5.275, Controllable Overhead Variance Overhead Volume Variance (b) Prepare the entries for manufacturing overhead during the period and the entry to recognize the overhead variances at the end of the period. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. Lst all debit entries before credit entries. Round answers to O decimal places, es. 5.275.) No. Account Titles and Explanation Debit Credit