Bria manufactures coffee mugs that it sells to other companies for customizing with their own logos. Bria prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee mugs per month: (Click the icon to view the cost data.) Actual cost and production Information for July 2018 follows: Click the icon to view actual cost and production information.) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost, AQ = actual quantity, FOH = fixed overhead; SC = standard cost; 8Q = standard quantity.) Formula Variance Direct materials cost variance (AC-SC) - AQ 800 F Direct labor cost variance (AC-SC) AQ $5.970' Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; A = actual quantity: FOH = fed overhead, SC = standard cost: SQ = standard quantity) Formula Variance Direct materials efficiency variance (AQ-SO) SC $ 60 Direct labor efficiency variance (AQ-SO) - SC $1458 Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by joumalizing the purchase of direct materials, including the related variance (Prepare a single compound journal entry) Date Accounts and Explanation Debit Credit Jul More info X a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,600 coffee mugs. c. Actual direct materials usage was 10,000 lbs at an actual cost of $0.17 d. Actual direct labor usage was 199,000 minutes at a total cost of $31.840. e. Actual overhead cost was $8,955 variable and $31,945 fixed. f. Selling and administrative costs were $126,000. per lb. Bria manufactures coffee mugs that it sells to other companies for customizing with their own logos. Bria prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59.900 coffee mugs per month: Click the icon to view the cost data) Actual cost and production information for July 2018 follows: (Click the icon to view actual cost and production information.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead, SC - standard cost: S = standard quantity) Formula Variance Direct materials cost variance (AC-SC)*AQ $ 800 F Direct labor cost variance (AC-SC)* AQ 5.970' u Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used. AC = actual cost, AQ = actual quantity: FOH = fixed overhead, SC - standard cost, So - standard quantity.) Formula Variance Direct materials efficiency variance (4Q-SO) SC 630 F Direct labor efficiency variance (AQ-) * SC 1456 Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by joumalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Accounts and Explanation Credit Date Debit Jul Requirements ta table $ 0.05 0.39 Direct Materials (0.2 lbs @ 50-25 per b) Direct Labor (3 minutes @ $0.13 per minute) Manufacturing Overhead Variable (3 minutes @ $0.06 per minute) Fored (3 minutos @ $0.14 per minute) Total Cost per Coffee Mug $ 0.18 1. Compute the cost and efficiency variances for direct materials and direct labor 2. Joumalize 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. Bria intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? 0.42 0.60 $ 104 Print Done