Wagner, Inc., manufactures truck tires. The following information is available for the last operating period.

• Wagner produced and sold 46,000 tires for $60 each. Budgeted production was 50,000 tires.

• Standard variable costs per tire follow:

Direct materials: 4 pounds at $3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12.00

Direct labor: 0.8 hours at $13.50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.80

Variable production overhead: 0.18 machine-hours at $15 per hour . . . 2.70

Total variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25.50

• Fixed production overhead costs:

Monthly budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000

• Fixed overhead is applied at the rate of $20 per tire.

• Actual production costs:

Direct materials purchased and used: 192,000 pounds at $2.70 . . . $ 518,400

Direct labor: 35,200 hours at $13.80 . . . . . . . . . . . . . . . . . . . . . . . . . 485,760

Variable overhead: 8,640 machine-hours at $15.30 per hour . . . . . . 132,192

Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,075,000

Required

a. Prepare a cost variance analysis for each variable cost for Wagner.

b. Prepare a fixed overhead cost variance analysis.

c. Prepare the journal entries to record the activity for the last period using standard costing.

Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.