496 chapters 12120 Learning Objectives 3, 4, 5, 6 3. VOH Co 51.580 F actives 3, 4, 5, 6 PR 2A and lournalizing standard cost variances Toda manufacture coffee mug thar i sells to other companies for customizin their own logas. Juda prepares flexible budgets and uses a standard cost system control manufacturing costs. The standard unit cost of a coffee mug is based budget volume of 59.800 codlee mugs per month: CHAPTER 50.05 0.39 Twity Direct Materials (0.2 ks @ $0.25 per ib) Direct Labor (3 minutes o 50.13 per minute) Manufacturing Overhead: Variable minutes 50.06 per minute) Fixed (3 minutes o 50.14 per minute) Total Cost per Coffee Mug 50.18 0.42 0.60 51.04 Exa entry to be furnilier for Actual cost and production information for July 2016 follows: a. There were no beginning or ending inventory balances. All expenditures were an account. b. Actual production and sales were 62.500 coffee mugs. c. Actual direct materials usage was 10,000 lbs at an actual cost of $0.17 per il d. Actual direct labor usage was 198,000 minutes at a total cost of $29.700. Actual overhead cost was $9.900 variable and $31.000 fixed. E. Selling and administrative costs were $120,000. Requirements Ii Compute the cost and efficiency variances for direct materials and direct labor 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturine overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Juda intentionally hired more highly skilled workers during July. How did this de cision affect the cost variances? Overall, was the decision wise? 11/19 earning Objective 6 Noter Problem P8-284 must be completed before attempting Problem P8-294. P8-29A Preparing a standard cost income statement Review your results from Problem P8-28A. Juda's standard and actual sales price per mug is $3. Prepare the standard cost income statement for July 2016. OGS at actual $72,300 ning Objectives 3, 4, 5, 6 3. VOH Cost Var $1,980 F P8-28A Computing and journalizing standard cost variances Tuda manufactures coffee mugs that it sells to other companies for customizing their own logos. Juda prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on budget volume of 59,800 coffee mugs per month: Cost per $ 0.05 0.39 upine mirute ya Direct Materials (0.2 lbs @ $0.25 per lb.) Direct Labor (3 minutes @ $0.13 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) Fixed (3 minutes $0.14 per minute) Total Cost per Coffee Mug $0.18 0.42 0.60 $ 1.04 for try to be familiar Actual cost and production information for July 2016 follows: a. There were no beginning or ending inventory balances. All expenditures were on account b. Actual production and sales were 62,500 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 198,000 minutes at a total cost of $29.700. e. Actual overhead cost was $9,900 variable and $31.000 fixed. f. Selling and administrative costs were $120,000. Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Juda intentionally hired more highly skilled workers during July. How did this de cision affect the cost variances? Overall, was the decision wise? 411119