Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15 points Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
15 points Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the company's product lines toer unit of product Standard Actual Cost Cost Direct materials: Standard: 4.0 metres at $4.10 per metre $16.40 Actualt 4.4 metres at $3.85 per setre $16.94 Direct labour: Standard 2.1 hours at 54.58 per hour 9.45 Actualt 1.8 hours at 54.85 per hour 8.73 Variable manufacturing overhead: Standard: 2.1 hours at $1.90 per hour 3.99 Actual: 1.8 hours at $2.25 per hour 4.es Fixed manufacturing overhead: Standard: 2.1 hours at $3.50 per hour 7.35 Actual 1.8 hours at $3.55 per hour 6.39 Total cost per unit 532-10 335.11 Pent Actual costat 4,500 units at $36.11 Standard costs: 4.500 units at $37.19 Difference in cost-favourable $162,495 167,355 $4,868 During this period, the company produced 4,500 units of product. A comparison of standard and actual costs for the period on a total cost basis is also given above. There was no inventory of materials on hand to start the period. During the period, 19.800 metres of materials was purchased and used in production. The denominator level of activity for the period was 8.240 hours Required: 1. For direct materials: a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "F* for favourable. U for unfavourable, and "None" for no effectie.rero variance) Help Save & Exit Submit Check my w Required: 1. For direct materials: a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "P" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance).) Price variance Quantity variance b. Prepare lournal entries to record all activity relating to direct materials for the period. b. Prepare journal entries to record all activity relating to direct materials for the period. View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions