Lungren Has Budgeted Construction Overhead for August of $260,000 for Variable

Essay

Lungren has budgeted construction overhead for August of $260,000 for variable costs and $435,000 for fixed costs.Actual costs for the month totaled $275,000 for variable and $445,000 for fixed.Allocated fixed overhead totaled $440,000.The company tracks each item in an overhead control account before allocations are made to individual jobs.Spending variances for August were $10,000 unfavorable for variable and $10,000 unfavorable for fixed.The production-volume overhead variance was $5,000 favorable.
Required:
a.Make journal entries for the actual costs incurred.
b.Make journal entries to record the variances for August.