PLEASE PROVIDE FULL SOLUTIONS WITH EXPLAINATIONS

1. Prepare fully labeled variance diagrams for manufacturing overhead splitting them between variance and fixed

Denominator level in hours

40,000

Actual output in units

21,000

Std. Variable overhead rate per machine hour

$2.80

Actual variable overhead incurred

$117,000

Actual fixed overhead incurred

$302,100

Variable overhead applied

$117,600

Variable overhead Efficiency Variance

$8,400 U

Fixed overhead budget variance

$2,100 U

What is the Over/under Allocated MO for Variable MO? ______________

What is the Over/under Allocated MO for Fixed MO? ___________________

1. Prepare journal entries that would be made at the end of each month relating to the above variances

please provide variance diagrams in similar format to below

Direct Materials Costs incurred: Actual inputs x actual Actual inputs x standard Standard inputs allowed for actual outputs x rates(AQ x AR) Rate Variance rates(AQ X SR) Efficiency Variance standard rates(FGXSQXSR)