MacGyver Corporation manufactures a product called Miracle Goo. The viscous substance is sold in six-gallon drums. Two top-secret raw materials are used in the production of Miracle Goo; these are referred to by their code names, A and B. Two types of labor are required also. These are mixers (labor type I) and packers (labor type II). You were recently hired by the company president, Pete Thorn, to be the controller. You soon learned that MacGyver uses a standard-costing system. Variances are computed and closed into Cost of Goods Sold monthly.

After your first month on the job, you gather the necessary data to compute the month’s variances for direct material and direct labor. You finish everything up by 5:00 p.m. on the 31st, including the credit to Cost of Goods Sold for the sum of the variances. You decide to take all your notes home to review them prior to your formal presentation to Thorn first thing in the morning. As an afterthought, you grab a drum of Miracle Goo as well, thinking it could prove useful in some unanticipated way. You spend the evening rehearsing your report. Unfortunately, a dramatic gesture knocks over the Miracle Goo, which oozes over the table and obliterates most of your notes. All that remains legible is the following information.

Other assorted data gleaned from your notes:
• The standards for each drum of Miracle Goo include 10 pounds of material A at a standard price of $5 per pound.
• The standard cost of material B is $15 for each drum of Miracle Goo.
• Purchases of material A were 12,000 pounds at $4.50 per pound.
• Given the actual output for the month, the standard allowed quantity of material A was 10,000 pounds. The standard allowed quantity of material B was 5,000 gallons.
• Although 6,000 gallons of B were purchased, only 4,800 gallons were used.
• The standard wage rate for mixers is $15 per hour. The standard labor cost per drum of product for mixers is $30 per drum.
• The standards allow 4 hours of type II labor (packers) per drum of Miracle Goo. The standard labor cost per drum of product for packers is $48 per drum.
• Packers were paid $11.90 per hour during the month. You happened to remember two additional facts. There were no beginning or ending inventories of either work in process or finished goods for the month, and the increase in accounts payable was caused by direct-material purchases only.

Required: 

Now you have a major problem. Somehow you must reconstruct all the missing data in order to be ready for your meeting with the president. You start by making the following list of the facts you want to use in your presentation.

Fill in the missing amounts in the list, using the available facts.

Transcribed Image Text:

Direct Material A: Quantity Variance 2,500 Direct Labor I: Rate Variance 600 Cost of Goods Sold 143,000 1,510 Direct Material B: Purchase Price Variance 1,200 Direct Labor II: Efficiency Variance 1,200 Accounts Payable 70,000 1,500 Beg. bal. 73,200 4,700 End. bal.