Transfer Entries and Variance Analysis. A distribution of the actual factory overhead of the Columbus Manufacturing Company for the past year is given on page 275. Budgeted factory overhead for the four producing departments (including apportioned service department overhead) is also given for two levels of activity. The company uses a predetermined rate for each producing depart­ment based on labor hours at the normal capacity level. Actual hours worked last year were 17,000 for each of the four producing departments

Â	Â	Â	Actual Factory Overhead			Â	Â	Â
								Total
	A	B	C	D	x	Y	Z
Actual expenses	$1 0,000	$14,000	$4,000	$8,000	$3,000	$5,000	$6,000	$50,000
Z's expenses	1,500	750	1,250	500	1,000	1.000	6,000	Â
Y's expenses	1,800	1,200	1,800	600	600	$6.000	Â	Â
X's expenses	2,000	1,000	1,200	400	$4,600	Â	Â	Â
Total	Â	Â	Â	Â	Â	Â	Â	Â
	$1 5,300	516,950	58.250	59,500				$50,000

Budgeted Factory Overhead

Â	20,000 Hours (Normal)	16,000 Hours
Department A	$17,800	$15,000
Department B	20,200	17,800
Department C	10,600	9,400
Department D	10,600	9,400
Total	$59,200	$51,600

Required: (1) Assuming that the actual factory overhead incurred was charged to a single factory overhead control account, prepare entries to record

(a) the transfer of the actual factory overhead to producing departments and (b) the applied factory overhead of Departments A and B only.

(2) Compute the spending and idle capacity variances for Departments A and B only.