Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. For each gallon of output, the following direct manufacturing costs are anticipated:

Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. Fer each gallon of output, the following direct manufacturing costs are anticipated: Direct lab-or: 3.1D hours at $2E.DD per hour $32.6!) Direct materials: 3.1!) gallons at 521.0!) per gallon $651!] [ During December of the current year. Boron produced a total of 2.51 0 gallons of output and incurred the following direct manufacturing costs: Direct labor: T301] hours worked @ an average wage rate of $2D.ED per hour Direct materials: Purchased: 9,200 gallons @ $21.45 per gallon Used in production: 2.200 gallons ' Boron records price variances for materials at the time of purchase. Required: Prepare jcumal entries for the following events and transactions: 1. Purchase, on credit. of direct materials. 2. Direct materials issued to production. 3. Direct labor cost of units completed this period. 4. Direct manufacturing cost [direct lab-or plus direct materials} of units completed and transferred to Finished Goods Inventory. 5. SaleI for $26G per gallonI of 2,322 gallons of output. (Hint: 1'r'ou will need two journal entries here.) [If no entry is required for a transactionl'event. select "Ho journal entry required" in the rst account eld. Rou nd final answers to the nearest 1lvhole dollar.} Assume that in June Schmidt Machinery Company {Exhibit 14.1] manufactured and sold 1,045 units for W15 each. During this month the company incuned $451600 total variable expenses and $1BD,6DIII total xed expenses. Required for the Month of June: 1. Prepare a flexible budget for the production end sale of 1,04l] units. 1I.I|'ariable expenses _ Contribution margin _ Budgeted operating income E- 2. Compute for June: a. The sales volume varianceI in terms of operating income. b. The sales volume variance, in terms of contribution margin. {Do not round intermediate calculations. Round your nal answers to nearest whole dollar amount} Operating income Contribution margin