Homework Help is Here – Start Your Trial Now!
Business
Accounting
8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance. Labor rate variance Labor efficiency variance Controllable variance... Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: 900 units Finished goods. Work in process. Raw materials. 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.

8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance. Labor rate variance Labor efficiency variance Controllable variance... Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: 900 units Finished goods. Work in process. Raw materials. 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 5CE: Yohan Company has the following balances in its direct materials and direct labor variance accounts...
See similar textbooks
icon
Related questions
Topic Video
Question
8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance.. Labor rate variance.. Labor efficiency variance Controllable variance.. Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: Finished goods. Work in process. Raw materials. 900 units 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.
Transcribed Image Text:8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance.. Labor rate variance.. Labor efficiency variance Controllable variance.. Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: Finished goods. Work in process. Raw materials. 900 units 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS