Refer to the information in PB10-5 for Gotta Cotta.

Required:

Prepare the journal entry to record the following for Gotta Cotta:

1. Direct materials costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories.

2. Direct labor and related variances.

3. Variable overhead costs and related variances.

Data from PB10-5

Gotta Cotta, Inc., manufactures basic terra cotta planters. Its standard cost information for the past year follows:

Gotta Cotta has the following actual results for the past year:

Transcribed Image Text:

Direct costs Clay Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($480,000/800,000 units) Standard Quantity Standard Price (Rate) Standard Unit Cost 2 lbs. $ 0.80 per lb. $1.60 0.5 hr. 12.00 per hr. 6.00 0.40 per direct labor hour 0.20 0.60