1.
value:
10.00 points
-2-2
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The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as
follows:
Variances
Direct materials
Price variance
Quantity variance
Direct labor
Rate variance
Efficiency variance
Manufacturing overhead
Spending variance
Volume variance
Standard Cost Unfavorable Favorable
$ 90,000
$ 4,500
$ 2,700
180,000
1,800
5,400
270,000
3,600
2,400
Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing
overhead. (Omit the "$" sign in your response.)
Actual costs incurred
Direct materials
$
Direct labor
$
Manufacturing overhead
$
2. value:
10.00 points
The accountants for Polyglaze, Inc., have developed the following information regarding the standard cost and the
actual cost of a product manufactured in June:
Standard Cost
Direct materials:
Standard: 10 ounces at $0.15 per ounce
Actual: 11 ounces at $0.16 per ounce
Direct labor:
Standard: 0.50 hours at $10.00 per hour
Actual: 0.45 hours at $10.40 per hour
Manufacturing overhead:
Standard: $5,000 fixed cost and $5,000 variable
cost for 10,000 units normal monthly volume
Actual: $5,000 fixed cost and $4,600 variable cost
for 8,000 units actually produced in June
Total unit cost
$
Actual Cost
1.50
$
1.76
5.00
4.68
1.00
1.20
$
7.50
$
7.64
a-1 Compute the materials price variance and the materials quantity variance, indicating whether each is favorable
or unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for
unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a
minus sign. Omit the "$" sign in your response.)
Materials price variance
$
Materials quantity variance
$
(Click to select)
(Click to select)
a-2 Prepare the journal entry to record the cost of direct materials used during June in the Work in Process account
(at standard). (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)
2
(Click to select)
2
(Click to select)
2
(Click to select)
b-1 Compute the labor rate variance and the labor efficiency variance, indicating whether each is favorable or
unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable,
and "None" for no effect (i.e., zero variance).Negative amounts should be indicated by a minus sign.
Omit the "$" sign in your response.)
Labor rate variance
$
Labor efficiency variance
$
(Click to select)
(Click to select)
b-2 Prepare the journal entry to record the cost of direct labor used during June in the Work in Process account (at
standard). (Omit the "$" sign in your response.)
General Journal
Debit
(Click to select)
2
(Click to select)
Credit
2
(Click to select)
2
(Click to select)
2
c-1 Compute the overhead spending variance and the overhead volume variance, indicating whether each is
favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for
unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a
minus sign. Omit the "$" sign in your response.)
Overhead spending variance
$
Overhead volume variance
$
(Click to select)
(Click to select)
c-2 Prepare the journal entry to assign overhead cost to production in June. (Omit the "$" sign in your response.)
General Journal
Debit
(Click to select)
2
(Click to select)
2
(Click to select)
2
(Click to select)
Credit