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Edney Company employs a standard cost system for product costing. The per$-$unit standard cost of its product is:

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Raw materials$ $14\mathrm{.}00$Direct labor $(2$ direct labor hours $$ $$8\mathrm{.}00$ per hour$)16\mathrm{.}00$Manufacturing overhead $(2$ direct labor hours $$ $$12\mathrm{.}80$ per hour$)25\mathrm{.}60$Total standard cost per unit$ $55\mathrm{.}60$

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The manufacturing overhead rate is based on a normal capacity level of $600,000$ direct labor hours. $($Normal capacity is defined as the level of capacity needed to satisfy average customer demand over a period of two to four years. Operationally, this level of capacity would take into consideration sales trends and both seasonal and cyclical factors affecting demand.$)$ The firm has the following annual manufacturing overhead budget:

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Variable$ $4,140,000$Fixed$3,540,000$$ $7,680,000$

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Edney incurred $$435,150$ in direct labor cost for $54,400$ direct labor hours to manufacture $26,000$ units in November. Other costs incurred in November include $$314,000$ for fixed manufacturing overhead and $$355,500$ for variable manufacturing overhead.

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Required:

$1.$ Determine each of the following for November. $[$Note: Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).]$

a$.$ The variable overhead spending variance.

b$.$ The variable overhead efficiency variance.

c$.$ The fixed overhead spending $($budget$)$ variance.

d$.$ The fixed overhead production volume variance.

e$.$ The total amount of under$-$ or overapplied manufacturing overhead $($i$.$e$.,$ the total manufacturing overhead cost variance for the period$).$

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$2.$ Prepare the following four journal entries: $($a$)$ to record actual variable overhead costs, $($b$)$ to record actual fixed overhead costs, $($c$)$ to record standard overhead costs applied to production, and $($d$)$ to record all four overhead cost variances. The company uses a single account, Factory Overhead, to record all overhead costs. Assume that the actual variable manufacturing overhead consists of utilities payable of $$169,500,$ indirect materials of $$118,000($all materials, direct and indirect, are recorded in a single account, Materials Inventory$),$ and $$68,000$ depreciation on factory equipment $($determined under the units$-$of$-$production method$).$ Assume that the fixed manufacturing overhead consists of accrued $($i$.$e$,$ unpaid$)$ salaries of $$69,000$ and factory depreciation of $$245,000.$ All unpaid salaries should be recorded in a single account, Accrued Payroll.

$3.$ Prepare the appropriate journal entry to close all manufacturing overhead variances to the cost of goods sold $($COGS$)$ account.