Problem 24.4A Computing and Journalizing Cost Variances (LO24-3, LO24-4) Sven Enterprises is a large producer of gourmet pet food During Apri, it produced 147 batches of puppy meal. Each batch weighs 1000 pounds To produce this quantity of output, the company purchased and used 148.,450 pounds of direct materials at a cost of $593,800. It also incurred direct labor costs of $17,600 for the 2,200 hours worked by employees on the puppy meal crew Manufacturing overhead incurred at the puppy meal plant during April totaled $3,625, of which $2.450 was considered fixed. Sven's standard cost information for 1,000-pound batches of puppy meal is as follows. Direct materiala standard price Standard quantity allowed per batch Direct labor standard rate 4.20 per pound 1, 020 pounds $ 8.50 per hour direct labor hours Standard hours allowed per batch 14 Fixed overhead budgeted Normal level of production Variable overhead application rate Fixed overhead application rato ($2,800 140 batches) Total overhead application rate $2, 800 per month 140 batches per month s 9.00 per batch 20.00 per batch $29.00 per batch Required: a. Compute the materials price and quantity variances b. Compute the labor rate and efficiency variances c. Compute the manufacturing overhead spending and volume variances d. Record the journal entry to charge materials (at standard) to Work in Process. e. Record the journal entry to charge direct labor (at standard) to Work in Process f. Record the journal entry to charge manufacturing overhead (at standard) to Work in Process g. Record the journal entry to transfer the 147 batches of puppy meal produced in April to Finished Goods. h. Record the journal entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Problem 24.4A Computing and Journalizing Cost Variances (LO24-3, LO24-4) Sven Enterprises is a large producer of gourmet pet food During Apri, it produced 147 batches of puppy meal. Each batch weighs 1000 pounds To produce this quantity of output, the company purchased and used 148.,450 pounds of direct materials at a cost of $593,800. It also incurred direct labor costs of $17,600 for the 2,200 hours worked by employees on the puppy meal crew Manufacturing overhead incurred at the puppy meal plant during April totaled $3,625, of which $2.450 was considered fixed. Sven's standard cost information for 1,000-pound batches of puppy meal is as follows. Direct materiala standard price Standard quantity allowed per batch Direct labor standard rate 4.20 per pound 1, 020 pounds $ 8.50 per hour direct labor hours Standard hours allowed per batch 14 Fixed overhead budgeted Normal level of production Variable overhead application rate Fixed overhead application rato ($2,800 140 batches) Total overhead application rate $2, 800 per month 140 batches per month s 9.00 per batch 20.00 per batch $29.00 per batch Required: a. Compute the materials price and quantity variances b. Compute the labor rate and efficiency variances c. Compute the manufacturing overhead spending and volume variances d. Record the journal entry to charge materials (at standard) to Work in Process. e. Record the journal entry to charge direct labor (at standard) to Work in Process f. Record the journal entry to charge manufacturing overhead (at standard) to Work in Process g. Record the journal entry to transfer the 147 batches of puppy meal produced in April to Finished Goods. h. Record the journal entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below
