1. Compute the va cost and wolume variances 2. Explain why the variances are favorable or unfavorable E23-22 Preparing a standard cost income statement "The May 2018 revenue and cost information for McDonald e 6 E23-22 Preparing Ouwers, Inc. Sales Revenue (at standard) Cost of Goods Sold (at standard) Direct Materials Cost Variance Direct Materials Efficiency Variance Direct Labor Cost Variance Direct Labor Efficiency Variance Variable Overhead Cost Variance Variable Overhead Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance $ 610,000 348,000 1.500 F 6,600F 4,200 U 2,700 F 2,800 U 1,100 U 2,300 U 8,300F Man re ment through gross profin. it's use. Has management donta E 23 Prepare a standard cost income statement for management throul Report all standard cost variances for management's use. Has mal good or poor job of controlling costs? Explain. E23-23 Preparing journal entries Marsh Company uses a standard cost system and reports the following inf for 2018: the following informatie Standards: 3 yards of cloth per unit at $1.05 per yard 2 direct labor hours per unit at $10.50 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,600 yards of cloth were purchased at $1.10 per yard Employees worked 1,800 hours and were paid $10.00 per hour Actual variable overhead was $1,700 Actual fixed overhead was $7,300 Marsh Company reported the following variances Hexible Badgets and Sendand Coty $ 130 Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance 420 F 900 F 2.100 F 1.500 U 1,500 F 600 U 1,600 F Marsh produced 1,000 units of finished product in 2018. Record the journal entries to record direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries to record the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Adjust the Manufacturing Overhead account. Le E23-24 Preparing a standard cost income statement McCarthy Fender, which uses a standard cost system, manufactured 20,000 boat fend ers during 2018. The 2018 revenue and cost information for McCarthy follows: $ 1,300,000