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Required information

$[The$ following information applies $to$ the questions displayed below.$]$

The Platter Valley factory $of$ Bybee Industries manufactures field boots. The cost $of$ each boot includes direct materials,

direct labor, and manufacturing $(factory)$ overhead. The firm traces all direct costs $to$ products, and $it$ assigns

overhead cost $to$ products based $on$ direct labor hours.

The company budgeted $$11,440$ variable factory overhead cost, $$92,400$ for fixed factory overhead cost and $2,200$ direct

labor hours $(its$ practical capacity$)to$ manufacture $4,400$ pairs $of$ boots $in$ March.

The factory used $3,300$ direct labor hours $in$ March $to$ manufacture $4,200$ pairs $of$ boots and spent $$16,400on$ variable

overhead during the month. The actual fixed overhead cost incurred for the month was $$95,000.$

$(DLH=$ Direct Labor Hours, $FB=$ Flexible Budget, $AQ=$ Actual Quantity, $SQ=$ Standard Quantity, $AP=$ Actual Price, $AH=$

Actual Hours, $SH=$ Standard Hours, and $SP=$ Standard Price$)$

Required:

Compute the fixed overhead spending $(budget)$ variance and the production volume variance for March and indicate whether each

variance $is$ favorable $(F)or$ unfavorable $(U).$

Compute the fixed overhead flexible$-$budget variance for March. $Is$ this variance favorable $(F)or$ unfavorable $(U)?$

Provide the appropriate journal entry $to$ record the fixed overhead spending variance and the appropriate journal entry $to$ record

the production volume variance for March. Assume that the company uses a single account, Factory Overhead, $to$ record overhead

costs.