Question
Bill uses a standard cost system for materials and labor in producing small fishing boats. Production requires fiberglass, paint, and a purchased trim package as
Bill uses a standard cost system for materials and labor in producing small fishing boats. Production requires fiberglass, paint, and a purchased trim package as well as direct as follows:
2,000 pounds of fiberglass @ $1.80 per pound | $3,600 |
6 quarts of gel coat paint @ $15 per quart | 90 |
1 trim package | 200 |
40 hours of labor @ $25 per hour | 1,000 |
The standard cost for DM and DL | $4,890 |
The following actual data related to the production of 600 boats was recorded in July
Materials Purchased on Account |
Fiberglass 2,100,000 pounds @$1.83 per pound |
Paint 1,000 gallons @$55.50 per gallon |
Trim Packages 640 @ $205 per package |
Materials Used |
Fiberglass 1,380,000 pounds |
Paint 924 gallons |
Trim packages 608 |
Direct Labor Used |
23,850 hours @ $23.50 per hour |
REQUIRED:
- Determine the direct materials price and efficiency variances for Fiberglass?
- Prepare the journal entries for fiberglass
- Determine the direct labor price and efficiency variances?
- Prepare the direct labor journal entries
- Determine the direct labor price and efficiency variances if direct labor is fixed and we made 610 boats?
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