MANAGERIAL ACCT W/ACCESS
17th Edition
ISBN: 9781264274017
Author: Garrison
Publisher: MCG
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Chapter 10, Problem 6E
EXERCISE 10-6 Direct Materials and Direct Labor Variances LO10-1, LO10-2
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
| Standard Quantity or Hours |
Standard Price or Rate |
Cost |
|
| Direct materials | 4.6 pounds |
$2.50 per pound | $11.50 |
| Direct labor | 0.2 hours |
$18.00 per hour | $3.60 |
During the most recent month, the following activity was recorded:
- Twenty thousand pounds of material were purchased at a cost of $235 per pound.
- All of the material purchased was used to produce 4,000 units of Zoom.
- 750 hours of direct labor time were recorded at a total labor cost of S 14,925.
Required:
- Compute the materials price and quantity variances for the month.
- Compute the labor rate and efficiency variances for the month.
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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one
unit of Zoom are given below:
Standard
Quantity or
Standard Price
Standard
Hours
or Rate
$2.10 per pound
$5.00 per hour
Cost
$16.59
$ 2.50
Direct materials
7.90 pounds
0.50 hours
Direct labor
ok
During the most recent month, the following activity was recorded:
nces
a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
C. 600 hours of direct labor time were recorded at a total labor cost of $4,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance). Input all amounts as positive…
Problem 8 Material and Labor Variance Journal Entries
Clyette Corporation uses a standard cost system and has the following
standard costs for direct materials and direct labor.
Direct materials:
Direct labor
2.5 meters @ P14 per meter
1.6 hours @ P8 per hour
P35.00
P12.80
During the month of February, 15,000 units were produced. The costs related
to the production of the product were as follows:
• 50,000 meters of materials were purchased at a cost of P13.80 per
meter.
40,000 meters of materials were used.
25,000 direct labor hours were used at a cost of P8.60 per hour.
Required: Prepare the journal entries to record the purchased of materials,
used of materials and labor incurrence.
Exercise 9.14 Direct Materials and Direct Labor Variances
OBJECTIVE 3
Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the fol-
lowing standards for one bar of the candy:
Direct materials (6.3 oz. @ $0.20)
Direct labor (0.08 hr. @ $18.00)
Standard prime cost
$1.26
1.44
$2.70
During the first week of operation, the company experienced the following actual results:
Bars produced: 143,000.
b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce.
c. There are no beginning or ending inventories of direct materials.
d. Direct labor: 11,300 hours at $17.30.
а.
Required:
1. Compute price and usage variances for direct materials.
2. Compute the rate variance and the efficiency variance for direct labor.
3. Prepare the journal entries associated with direct materials and direct labor.
Chapter 10 Solutions
MANAGERIAL ACCT W/ACCESS
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - EXERCISE 10B-1 Standard Cost Flows; Income...Ch. 10.B - Prob. 2ECh. 10.B - Prob. 3ECh. 10.B - Prob. 4ECh. 10.B - Prob. 5PCh. 10.B - Prob. 6PCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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