Refer to the information in PB9-5 for Dolles Clay.

Dolles Clay has the following actual results for the past year:
Number of units produced and sold ..... 675,000
Number of pounds of clay used ..... 1,305,000
Cost of clay purchased and used ..... $ 991,800
Number of labor hours worked ..... 337,500
Direct labor cost .............$3,712,500
Variable overhead cost .......... $ 157,500
Fixed overhead cost ............ $ 505,000

Required:
Prepare the journal entries to record the following for Dolles Clay:
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 relatedvariances.

Transcribed Image Text:

Standaro Quantity Standard Price (Rate) Standard Unit Cost $ 0.80 per lb $12.00 per hr 0.40 per hr $1.60 6.00 0.20 Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($480,000 800,000 units) 2 lbs 0.5 hr 0.5 hr 0.60