Summarizing materials quantity and price variances, labor efficiency and rate variances, and materials and labor variances. The Concord Company manufactures a product that is processed through two departments, Cutting and Fitting. All materials are added in the Cutting Department (the first department).

Some data on standard costs that have been established for materials and labor are 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 general journal entries 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—Cutting 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—Fitting Department 124.

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Raw Materials Panel units: 4 units at $2.10 each Assembly sets: 4 sets at 6 cents each Standard Materials Cost per Unit $8.40 24 $8.64 Direct Labor Cutting Dept.: hr at $9.60 per hr $1.60 2.00 Fitting Dept: hr at $8.00 per hr Standard Direct Labor Costs per Unit $3.60 During the month of May 19X1, 4,500 units of the product were manufactured. The actual costs of materials and labor were as follows: Raw Materials Panel units: 18,100 at $2.12 each Assembly sets: 18,050 at 5.5 cents each Total Actual Materials Costs Direct Labor Cutting Dept: 752 hr at $9.60 per hr Fitting Dept.: 1,100 hr at $7.80 per hr Total Actual Direct Labor Costs $38,372.00 992.75 $39,364.75 $ 7,219.20 $8,580.00 $15,799.20