Case $10-50$ Missing Data; Variances, Ledger Amounts $($Appendix$)($LO $10-1,10-3,10-9)$

Case $10-50$ Part $1,$ Part $2,$ Part $3,$ and Part $4$

MacGyver Corporation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six$-$gallon drums. Two raw materials are used: these are refercd to by people in the business as A and B$.$ Two types of labor arereauired also, These are mixers $($labor class I$)$ and packers $($labor class II$).$ You were recently hired by the company president to be the controller. You soon learned that MacGyver uses a standard$-$costing system. Variances are computed and closed into Cost of Goods Sold monthly. After your first month on the job, you gathered the necessary data to compute the month's variances for direct material and direct labor, You finished everything up by $5$:$00$pm on the $31$st including the credit to Cost of Goods Sold for the sum of the variances, You decided to take all your notes home to review them prior to your formal presentation. As an afterthought, you grabbed a drum of Miracle Goo as well, thinking it could prove useful in some unanticipated way. You spent the evening boning up on the data for your report and were ready to call it a night. As luck would have it though, you knocked over the Miracle Goo as you rose from the kitchen table.The stuff splatered everywhere, and, most unfortunately, ruined most of your notes. All that remained legible is the following information.Direct Material A: Quantity Variance $2,500$ Direct Labor I: Rate Variance $600$ Cost of Good Sold $141,000$ Other assorted data from your notes:$>$The standards for each drum of Miracle Good include $15$ pounds of material A at a standard price of $$5\mathrm{.}00$ per pound.$>$The standard cost of material B is $$15,00$ for each drum of Miracle Goo.$>$Purchases of material A were $11,000$ pounds at $$4\mathrm{.}30$ per pound.the month.a$,805>$Given the actual output for the month, the standard allowed quantity of material A was $16,500$ pounds. Standard allowed quantity of material B was $5,300$ gallons$>$Although $6,000$ gallons of B were purchased, only $5,300$ gallons were used.$>$The standard wage rate for mixers is $$15\mathrm{.}00$ per hour. The standard labor cost per drum of product for mixers is $$30\mathrm{.}00$ per drum.$>$Packers were paid $$11\mathrm{.}80$ per hour druing the month.$>$The standards allow $4$ hours of direct labor II $($packers$)$ per drum of Miracle Goo. The standard labor cost per drum of product for packers is $$48\mathrm{.}00$ per drum.

REQUIRED: $($compute the following$)$Somehow we must reconstruct all the missing data!

$1.$Actua

Output $($in drums$)>$There were no beginning or ending inventories of either work in process or finished goods for DIRECT MATERIAL$>$The increase in accounts payable relates to direct$-$material purchases only. a$.$ standard quantity per drum. b$.$ standard price c$.$ standard cost per drum Direct Material B: Purchase$-$Price Variance $2$ Compute the following amounts related to direct materials at MacGyver for the month.$($Indicate the effect of each variancc by selecting "favorable. or$"\text{'}$unfavorable$.!"$ Select none and enter $"0"$ for no effect. Round "standard price" "standard cost per drum" and Actual price" to $2$ decimal places, c$.$ actual quantity purchased. actual priced. standard quantity allowed, given actual output g$.$ actual quantity use d$.$ Direct Labor lII: Efficency Variance. purchase price variance i$.$ quantity variance,$800$ DIRECT LABOR Accounts Payable a$.$ standard hours per drum b$.$ standard rate per hour I,$400$ Beg bal.c$.$ standard cost per drum$5,500$ End. bal,c$.$ actual rate per hour f$.$ actual hours d$.$ standard quantity allowed, given actual output g$.$ rate variance h$.$ efficiency variances $3.$Compute the follwoing amounts related to direct labor at MacGyer for the month. $($Indicate the effect of each variance by selecting "Favorable" or "Unfavorable." Select $"\text{'}$none$"$ and enter"$0$ for no effect. Round "Standard Rate per hour" "Standard cost per drum" and "Actual rate per hour" to $2$ decimal places.$)$Aferlbper lbDhsers IkourshaursBheuspergalIpergaPackers Thourshoushoursd $4.$Determine the total variance for the month. $($indicate the effect of the variance total by selecting "Favorable" or$"$Unfavorable $"$ Select "none and enter $"0"$ for no effect

Required information

Case $10-50$ Missing Data; Variances, Ledger Accounts $($Appendix$)($LO $10-1,10-3,10-9)$

$[$The fallowing informatlon appiles to the questons displayed below$]$

MacGyver Corporation manufactures a praduct called Miracle Goo, which comes in handy for just about arything. The thick tarry substance is sold in sk$-$galon drums. Two raw materlals are used, these are referred to by people in the business as A and B$.$ Two types of labor are required also. These are mixers $($labor class i$)$ and packers llabor class llly You were recently hirod by the company president, Pete Thom, to be the controler. You soon leamed that MacGyver uses a standard$-$costing system. Varlances are computed and closed into Cost of Goods Soid monthly After your first month on the jab, you gathered the necessary data to compute the manth's varlances for direct materlial and direct labar. You finished everything up by $5\mathrm{.}00$ p$.$m$.$ on the

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