Required Information
The following information applies to the questions displayed below.
The Platter Valley factory of Bybee Industrles manufactures field boots. The cost of each boot Includes
direct materlals, 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 $ varlable factory overhead cost, $ for fixed factory overhead cost
and direct labor hours Its practical capacity to manufacture pairs of boots in March.
The factory used direct labor hours in March to manufacture palrs of boots and spent
$ on varlable overhead during the month. The actual fixed overhead cost Incurred for the month
was $
Requlred:
Compute the factory overhead flexiblebudget varlance, the factory overhead spending varlance, and the efficlency
varlance for varlable factory overhead for March and state whether each varlance is favorable F or unfavorable U
Provide the approprlate journal entry to record the varlable overhead spending varlance and a second entry to record
the varlable overhead efficlency varlance for March. Assume that the company uses a single account, Factory Overhead, to
record overhead costs.
