Refer to the information in E$10\mathrm{.}8.$ At Adventura, MOH is applied based on DI hours, with the following expectations for fixed$-$MOH cost:

Fixed$-$MOH

$1\mathrm{.}2$ DL hours per unit @ $$4/$DL hour

Throughout the year, Adventura used $3,780$ DL hours in the process of making $3,250$ tents. The company had originally planned to produce and sell $3,000$ tents with budgeted fixed$-$MOH cost of $$14,400.$ Its actual fixed$-$MOH costs amounted to $$13,500$ for the year.

Required

$$Determine Adventura's fixed$-$MOH price and volume variances. Also identify whether the company's fixed$-$MOH costs were under$-$ or overapplied, and by how much.

$$Record the journal entries to accompany the following transactions for fixed$-$MOH: $(1)$ actual fixed$-$MOH cost incurred $($consider half is for depreciation of plant assets, and half is for accrued supervisor salaries$),$

$(2)$ allocation of fixed$-$MOH cost to production, and $(3)$ recognition of specific fixed$-$MOH variances $($while closing out the fixed$-$MOH Control account$).$

$$Give at least one plausible explanation for each variance. Are there any situations that would explain both of these fixed$-$MOH variances?

$$How could these variance results impact planning and goal setting for next year?