Refer to the information presented in E10-8 for Easy Roller.

Required:

Prepare the journal entry to record the following for Easy Roller:

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 E10-8

Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:

Easy Roller had the following actual results for the past year.

Direct costs Plastic Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000/900,000 units) Standard Quantity Standard Price (Rate) Standard Unit Cost 12 sq ft. $ 0.75 per sq. ft. $9.00 .25 hr. 12.00 per hr. 3.00 1.20 per direct labor hour 0.30 0.40