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Assume Davis Consulting Inc has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost of $900
Assume Davis Consulting Inc has created a standard cost card for each job. Standard | |||||||
direct materials include 14 software packages at a cost of $900 per package. | |||||||
Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans | |||||||
on completing 12 jobs during March 2013. | |||||||
Actual direct materials costs for March included 90 software packages at a total cost | |||||||
of $81,450. Actual direct labor costs included 100 hours per job at an average rate | |||||||
of $125 per hour. Davis completed all 12 jobs in March | |||||||
1. Calculate direct materials cost and efficiency variances. | |||||||
2. Calculate direct labor cost and efficiency variances. | |||||||
3. Prepare journal entries to record the use of both materials and labor for March | |||||||
for the company. |
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