please help in detail process at the end of the month consists of 1,000 units that are 65 percent complete. There was no inventoryin process at the beginning of the month.Instructionsa) Prepare journal entries to record all variances and the costs incurred (at standard) in the Work inProcess account as separate compound entries for (1) direct materials, (2) direct labor, and (3)manufacturing overhead.b) Prepare journal entries to record (1) the transfer of units finished to the Finished Goods Inventoryaccount and (2) the Cost of Goods Sold (at standard) for the month.c) Assuming that the company operated at 90 percent of its normal capacity during the current month,what is the amount of the budgeted fixed manufacturing overhead per month? Pandora Hardwood Products uses standard costs in a process cost system. At the end of the current month,the following information is prepared by the company's cost accountant:DMDLMOHactualsstd costsDM price varianceDM qty varianceDL rate varianceDL efficiency varianceMOH spending varianceMOH volume variance96.000 €90.000 €2.400 €8.400 €82.500 €84.000 €3.000 €1.500 €123.240 €126.000 €7.260 €4.500 €The total standard cost per unit of finished product is $30. During the current month, 9,000 units werecompleted and transferred to the finished goods inventory and 8,800 units were sold. The inventory of work in

A budget is a tool to predetermine estimated revenue and estimated expenses. Every organization…

Pandora Hardwood Products uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the company's cost accountant: DM DL MOH actuals std costs DM price variance DM qty variance DL rate variance DL efficiency variance MOH spending variance MOH volume variance 96.000 € 90.000 € 2.400 € 8.400 € 82.500 € 84.000 € 3.000 € 1.500 € 123.240 € 126.000 € 7.260 € 4.500 € The total standard cost per unit of finished product is $30. During the current month, 9,000 units were completed and transferred to the finished goods inventory and 8,800 units were sold. The inventory of work in

Pandora Hardwood Products uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the company's cost accountant: DM DL MOH actuals std costs DM price variance DM qty variance DL rate variance DL efficiency variance MOH spending variance MOH volume variance 96.000 € 90.000 € 2.400 € 8.400 € 82.500 € 84.000 € 3.000 € 1.500 € 123.240 € 126.000 € 7.260 € 4.500 € The total standard cost per unit of finished product is $30. During the current month, 9,000 units were completed and transferred to the finished goods inventory and 8,800 units were sold. The inventory of work in

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 6E: Standard direct materials cost per unit from variance data The following data relating to direct...

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Ehrlich Inc. makes a product with the following standard costs for direct material and direct labor: Quantity/Hours Price /Rate Per Unit Direct Material 6.00 lbs $ 3.80 Direct Labor 1.5 hrs $ 16.00 During the most recent month, 6,300 units were produced. The costs associated with the month's production of this product were as follows: Quantity/Hours Price /Rate Materials purchased 42,000 lbs $3.00/per lbs. Materials used in production 32,000 lbs Direct labor 9,950 hrs $14.50/per hr.
PLEASE PROVIDE FULL SOLUTIONS WITH EXPLAINATIONS Prepare fully labeled variance diagrams(used in Class) for manufacturing overhead splitting them between variance and fixed Denominator level in hours 40,000 Actual output in units 21,000 Std. Variable overhead rate per machine hour $2.80 Actual variable overhead incurred $117,000 Actual fixed overhead incurred $302,100 Variable overhead applied $117,600 Variable overhead Efficiency Variance $8,400 U Fixed overhead budget variance $2,100 U What is the Over/under Allocated MO for Variable MO? ______________ What is the Over/under Allocated MO for Fixed MO? ___________________ Prepare journal entries that would be made at the end of each month relating to the above variances.
Quality Company uses a standard cost system and reports the following information for 2024: 1(Click the icon to view the information.) Quality Company reported the following variances: 2(Click the icon to view the variances.) Quality produced 1,000 units of finished product in 2024. Read the requirements3. Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (6) (7) (8)…
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost $5 per foot ? per hour Direct materials 3 feet $ 15 Direct labor ? hours ? During March, the company purchased direct materials at a cost of $45,375, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of this labor time was $50,400. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 2,250 U $ 3,400 U $ 1,000 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of…
Q3: From the following data prepare a unit cost statement showing the prime cost of product X and Y together with analysis of variances: Material Labor Standard Actual Standard Actual Product X 500 kgs @ Rs.3.00 450 kgs @ Rs.3.60 120 hours @ Rs.3.00 138 hours @ Rs.2.25 Required: Do material and labor variances analysis. Product Y 80 kgs @ Rs.5.00 85 kgs @ Rs.4.75 60 hours @ Rs.2.10 56 hours @ Rs.2.00
Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company's cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials.... Quantity allowed per unit . Direct labor rate .... Hours allowed per unit.. Fixed overhead budgeted Normal level of production Variable overhead application rate Fixed overhead application rate ($12,000 _ 1,200 units) . .. 10.00 per unit Total overhead application rate.. $5 per pound .100 pounds per unit $20.00 per hour 2 hours per unit $12,000 per month . 1,200 units $ 2.00 per unit $12.00 per unit Actual Cost Information Cost of materials purchased and used .... Pounds of materials purchased and used. Cost of direct labor.... $468,000 .104,000 pounds $46,480 2,240 hours Hours of direct labor . anr$2,352 .$12,850 .1,000 units Cost of variable overhead . Cost of fixed overhead . Volume of production . Instructions 1.…
HeadsetHeadset manufactures headphone cases. During September 20182018, the company produced and sold 108 comma 000108,000 cases and recorded the following cost data: LOADING... (Click the icon to view the cost data.) Read the requirements LOADING... . Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U).(Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance = = Direct labor cost variance = = Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and…
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured: AQ-Actual Quantity SQ-Standard Quantity AP Actual Price SP=Standard Price Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ Actual Cost X Standard 6 lbs. @ $8 per lb. 2 hrs. @ $17 per hr.. 2 hrs. @ $12 per hr. X $ 0 $ Actual 51,000 lbs. @ $8.10 per lb. 16,500 hrs. @ $17.60 per hr. $208,600 8,400 0 0 $ 0 Standard Cost
Amada Company's standard cost system reports this information from its December operations. Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet 1 Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) direct labor, and (c) overhead. Ignore the journal entry to close the variances. 2 3 Record direct materials costs and variances. Date December 31 Note: Enter debits before credits. $ 100,000 General Journal 3,000 U 500 F 90,000 7,000 F 1,200 U 375,000 12,000 U 9,000 U Debit Credit >
I. Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company's cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials .... Quantity allowed per unit . Direct labor rate .... Hours allowed per unit .. Fixed overhead budgeted . Normal level of production. Variable overhead application rate.. Fixed overhead application rate ($12,000 _ 1,200 units)... 10.00 per unit Total overhead application rate..... .. $5 per pound .100 pounds per unit $20.00 per hour . 2 hours per unit $12,000 per month 1,200 units $ 2.00 per unit $12.00 per unit Actual Cost Information Cost of materials purchased and used... Pounds of materials purchased and used . Cost of direct labor.. Hours of direct labor.. $468,000 .104,000 pounds $46,480 . 2,240 hours $2,352 .$12,850 .1,000 units Cost of variable overhead Cost of fixed overhead . Volume of production.…
In good accounting form, compute for the: 1. Spending variance2. Variable overhead efficiency variance3. Controllable varianceMarissa co., the consultant of marisol co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: input required per unit standard cost per unit standard cost per unit Direct materials 6 kg per unit p90 per kg p540 Direct labor 5 hrs per unit p50 per hour p250 Other information follows: > Budgeted factory overhead for the year: Variable 480,000 Fixed 600,000 > The company's normal capacity per month is 400 units> Actual cost materials purchased for the year is p2,342,000> During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs>Actual labor costs for the year 1,080,000 of which…