The following information relates to Joplin Company for the period just ended:
Standard variable overhead rate per hour
$1
Standard fixed overhead rate per hour
$2
Planned monthly activity
40,000 machine hours
Actual production completed
82,000 units
Standard machine processing time
Two units per hour
Actual variable overhead
$37,000
Actual total overhead
$121,000
Actual machine hours worked
40,500
The company uses machine hours to apply variable and fixed overhead
Required:
Calculate the variable overhead variances and the fixed overhead variances.
Record the journal entries when the variances are recognized.
Record the journal entries when the variances are disposed at the end of the period.
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