Corporate Finance Assignment/ Professional Essay Writers
VARIANCES FROM STANDARD COSTS
Standard cost s and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 250 units of product were as follows:
Direct materialsAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦ 500 Pounds at $25.00 per pound
Direct laborAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦.4,000 direct labor hours at $19.00 pern hour
Factory overheadAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦.Productive capacity of 100%, 10,000 budgeted FG per year
NOTE: Each unit of product requires a standard of 32 machine hours.
Direct materialsAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦. 490 pounds at $24.75 per pound
Direct laborAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦ 4,200 direct labor hours at $19.20 an hour
Factory overheadAcâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦Acâ‚¬Â¦.Total variable cost, $24,750
Total fixed cost, $20,000
INSTRUCTIONS: Indicate the amount and nature (favorable or unfavorable) of each of the following variances. Show your work on the amounts for partial credit.
|a. Direct materials quantity variance for 250 FG produced||$||F
|b. Direct materials price variance on 490 lbs at $24.75 per lb.||$||F
|c. Direct labor time or efficiency variance||$||F
|d. Direct labor rate or price variance for 4,200 hours||$||F
e. Record the journal entry for the actual direct material purchase of $24.75 which should include the entry for the direct materials price variance
f. Record the journal entry for the actual direct labor cost for the 4,200 hours worked which should include the direct labor rate and efficiency variances.
g. Record the journal entry for the sales on account of $130,000 for the year.
h. Record the journal entry for the cost of goods manufactured by $100,000. These goods were completed and transferred from WIP into the Finished Goods Inventory. Get FInance Help Today