Laughlin, Inc uses a standard costing system. The predetermined overhead rates are calculated using practical capacity Practical capacity for a yeer is defined as 1,000,000 units requring 200,000 standard drect abor hours. Budgeted overhead for the yeat is $750,000, of which $300,000 is fixed overhead. During the yeat, 500,000 unts were produced using 190,000 direct lsber hours. Actuall annual overhead costs totaled $800,000, of which $294,700 is fixed overhead. Required: 1. Calculate the fised overhead spending and volume variances Fixed Overhead Spendng variance Fixed Overhead Vclume Varance Unfavorable 2. Calculate the variable overhead spending and efficiency variances. Variable Ovethead Spending Variance Variable Overhead Emiciency Variance Unfavorable w 3. Prepare the yournal entries that reflect the followng a. Assignment of overhead to production b. Recognition of the incurrence of actiual overhead Recogrition of overhead variances d. Glosing out overhead variances, assuming they are not material Note: Close the vanances with a debit balance first For compound entries f an amount box does not require Work in Phroo Variable Overhead Control Faed Overhead Control