Presented Below Is a Flexible Manufacturing Budget for Jacob Company

Presented below is a flexible manufacturing budget for Jacob Company, which manufactures fine timepieces:
Activity Index:
The company applies the overhead on the basis of direct labor hours at $7.00 per direct labor hour and the standard hours per timepiece is 1/2 hour each. The company's actual production was 5,800 timepieces with 2,900 actual hours of direct labor. Actual overhead was $21,200.
Instructions
(a) Compute the controllable and volume overhead variances.
(b) Prepare the entries for manufacturing overhead during the period and the entry to recognize the overhead variances at the end of the period.

Correct Answer:

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