MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 8, Problem 6PSB
Problem 21-6BA Materials, labor, and overhead variances recorded and analyzed C1 P5
Kenya Company’s
| Standard direct materials cost ……………………………………………… | $130,000 |
| Direct materials quantity variance (favorable) …………………………….. | 5,000 |
| Direct materials price variance (favorable)………………………………… | 1,500 |
| Actual direct labor cost ……………………………………………………. | 65,000 |
| Direct labor efficiency variance (favorable) ………………………………... | 3,000 |
| Direct labor rate variance (unfavorable) …………………………………….. | 500 |
| Actual overhead cost ………………………………………………………… | 250,000 |
| Volume variance (unfavorable) ………………………………………………. | 12,000 |
| Controllable variance (unfavorable) ………………………………………… | 8,000 |
Required
- Prepare journal entries dated June 30 to record the company’s costs and variances for the month. (Do not prepare the
journal entry to close the variances.) Check (1) Dr. Work in process Inventory (for overhead), $230,000
- Identify the variances that would attract the attention of a manager who uses management by exception. Describe what action(s) the manager should consider.
Analysis Component
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Question 13
What would most likely prompt the following journal entry?
Debit Credit
Materials
$1.430
DM price variance $830
Accounts payable
$2,260
O Direct materials were purchased for more than the standard price.
O Direct Materials were purchased for less than the standard price.
O More than the standard amount of direct materials were put into production.
O Less than the standard amount of direct materials were put into production.
0.8 pts
QS 23-8 Materials variances P3
Tercer reports the following for one of its products. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable.
Actual finished units produced....
Direct materials standard (4 lbs. @ $2 per Ib.) ... $8 per finished unit
300,000 lbs.
60,000 units
Actual direct materials used
Actual cost of direct materials used...
$540,000
QS 21-11 (Algo) Direct labor rate and efficiency variances LO P3
A company reports the following information for its direct labor.
Actual hours of direct labor used
Actual rate of direct labor per hour
Standard rate of direct labor per hour
Standard hours of direct labor for units produced
AH Actual Hours.
SH Standard Hours
AR= Actual Rate
SR Standard Rate
Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.
Actual Cost
$
0
$
74,000
$ 15
$ 13
75,300
0
0
$
0
Standard Cost
Chapter 8 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Managers use management by exception for control...Ch. 8 - Tercer report the following on one of its...Ch. 8 - Prob. 9QSCh. 8 - Materials cost variances P2 Juan Company’s output...Ch. 8 - The following information describes a companys...Ch. 8 - Prob. 12QSCh. 8 - Fogel Co. expects 116,000 units for the year. The...Ch. 8 - AizPro Corp, reports the following for November....Ch. 8 - Refer to information in QS 8-14. Compute the...Ch. 8 - Prob. 16QSCh. 8 - A Preparing overhead entries P5 Refer to the...Ch. 8 - Mosaic Company applies overhead using machine...Ch. 8 - Refer to the information from QS 8-18. Compute the...Ch. 8 - Farad, Inc., specializes in selling used SUVs....Ch. 8 - In a recent year, BMW sold 216,944 of its 1 series...Ch. 8 - JPAK Company manufactures and sells mountain...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Exercise 21-8 Standard unit cost; total variance...Ch. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Refer to Exercise 8-13. Hart Company records...Ch. 8 - Prob. 15ECh. 8 - After evaluating Null Companys manufacturing...Ch. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Exercise 21-19 Computation of total overhead rate...Ch. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Phoenix Companys 2015 master budget included the...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Tohono Companys 2015 master budget included the...Ch. 8 - Refer to the information in Problem 8-1B. Tohono...Ch. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Problem 21-6BA Materials, labor, and overhead...Ch. 8 - (This serial problem began in Chapter 1 and...Ch. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - The reason we use the words favorable when...Ch. 8 - Prob. 5BTNCh. 8 - Prob. 6BTNCh. 8 - Prob. 7BTNCh. 8 - Prob. 8BTNCh. 8 - Prob. 9BTN
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