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 $59,700$ coffee mugs per month:

$($Click the icon to view the cost data.$)$

Actual cost and production information for July $2024$ follows:

$($i$)($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.

quantity.$)$

Begin by journalizing the purchase of direct materials, including the related variance. $($Prepare a single compound journal entry.$)$

Now, journalize the usage of direct materials, including the related variance. $($Prepare a single compound journal entry.$)$

Data table

$[$ Direct Materials $(0\mathrm{.}2lbs$ @ $$0\mathrm{.}25$ per $lb),$$$0\mathrm{.}05],[$ Direct Labor $(3$ minutes @ $$0\mathrm{.}13$ per $,],[$ minute$),0\mathrm{.}39],[$ Manufacturing Overhead: $,],[,$ Variable $(3$ minutes @ $$0\mathrm{.}06$ per $,],[,$ minute$),$ $$0\mathrm{.}18],[,\{\begin{array}{ccc}\text{:}[& \text{F}\text{i}\text{x}\text{e}\text{d}(3\text{m}\text{i}\text{n}\text{u}\text{t}\text{e}\text{s}\text{@}\text{\$}0\mathrm{.}15\text{p}\text{e}\text{r}],[\text{m}\text{i}\text{n}\text{u}\text{t}\text{e})& ]\end{array},\frac{{0\mathrm{.}45}_{0\mathrm{.}63}}{\text{\$}1\mathrm{.}07}]$

Direct Labor $(3$ minutes @ $$0\mathrm{.}13$ per

minute$)$

$0\mathrm{.}39$

Manufacturing Overhead:

Variable $(3$ minutes @ $$0\mathrm{.}06$ per minute$)$ $$0\mathrm{.}18$

Fixed $(3$

direct labor costs, including the related variances. $($Prepare a single compound journal entry.$)$

Journalize the incurrance and assignment of

More info

a$.$ There were no beginning or ending inventory balances. All

expenditures were on account.

b$.$ Actual production and sales were $62,400$ coffee mugs.

c$.$ Actual direct materials usage was $10,000$ lbs$.$ at an actual

cost of $$0\mathrm{.}17$ per lb$.$

d$.$ Actual direct labor usage was $203,000$ minutes at a total cost

of $$32,480.$

e$.$ Actual overhead cost was $$11,165$ variable and $$29,335$

fixed.

f$.$ Selling and administrative costs were $$123,000.$