Summarizing materials quantity and price variances, labor efficiency and rate variances, and materials and labor variances. The Walker Siding Company manufactures a building product that is processed through two departments, Pressing and Curing. All materials are added in the Pressing Department

(the first department). Certain data concerning standard costs that have been established for materials and labor are given below:

During the month of May 19X1, 10,000 units (100,000 square feet) of the product were manufactured. Actual costs of materials and labor were as shown below.

Instructions 1. Compute the quantity and price variances for each of the two raw materials.
2. Prepare a materials variances summary (Exhibit 3).
3. Compute the labor efficiency and rate variances for each department.
4. Prepare a labor variances summary (Exhibit 5).
5. Give the entries in general journal form on May 31, 19X1, to do the following:

a. Charge the standard costs of materials to production, record the actual costs of the raw materials used, and record the materials variances using separate accounts for materials quantity variances and materials price variances. Use Work in Process—Pressing Department 123.

b. Charge the standard costs of direct labor to production, remove the actual labor costs from Factory Payroll Clearing, and record the labor variances using separate accounts for labor efficiency and labor rate variances. Use Work in Process—Curing Department 124.

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Raw Materials O Magic Board: 20 sq ft at 20 cents per sq ft Filler: 14 lb at 12 cents per lb $4.00 1.68 Standard Materials Costs per Unit (10 sq ft) $5.68 Direct Labor Pressing Dept.: hr at $9.60 per hr Curing Dept: hr at $8.00 per hr Standard Direct Labor Costs per Unit $2.40 .80 $3.20