Case 10-49 Direct-Material and Direct-Labor Variances; Job-Order Costing; Journal Entries (Appendix) (LO 10-1,10-3, 10-6,10-9) The following information applies to the questions displayed below.) Metro Fashions, Inc., manufactures women's blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities Metro Fashions sews the particular stores' labels on the blouses. During November the company worked on three orders, for which the month's job-cost records disclose the following data Material Used Lot Number Boxes in Lot N42 N43 N44 1,000 1,700 1,200 (yards) 24100 40,440 28,825 2,980 5,130 2,890 The following additional information is available 1. The firm purchased 95,000 yards of material during November at a cost of $106,400 2. Direct labor during November amounted to $165,000. According to payroll records production employees were paid $15 per hour. 3. There was no work in process on November 1. During November, lots N42 and N43 were completed. All material was issued for lot N44, which was 80 percent completed as to conversion (i.e., direct labor and overhead) 4. The standard costs for a box of six blouses are as follows $ Direct material Direct labor Production 24 yards at 110 3 hours at $14.70 $ 26.40 3 hours at $12.00 36.00 overhead Standard cost per box $106.50 Case 10-49 Part 1 Required: 1. Complete the following schedule computing the standard cost of lots N42, N43, and N44 for November. (Round "Standard Cost per Box" to 2 decimal places.) METRO FASHIONS, INC Standard Cost of Production For November Quantity Standard Cost Total Standard (boxes) Lot N42 N43 N44 Standard cost of production per Box Cost 1,000 1,700 1,200 Case 10-49 Part2 2. Complete the following schedules. (Indicate the effect of each variance by selecting "Favorable" or "unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "Standard price", "Standard rate" and "Rate paid in excess of standard" to 2 decimal places.) a. Direct-material purchase price variance. (Hint: Must be computed in total, across all three production lots.) METRO FASHIONS, INC Direct-Material Purchase Price Variance For November Actual cost of materials purchased Standard cost of materials purchased Direct-material purchase price variance c. Direct-labor efficiency variance METRO FASHIONS, INC Direct-Labor Variances For November Lot No N42 N43 N44 Total Direct-labor efficiency variance Standard hours: Boxes in lot Standard hours per box Total Percentage of completion Total standard hours Actual hours worked 0 0 0 Variance in hours Standard rate Direct-labor efficiency varianc 0.00 0.00 0.00 0.00 d. Direct-labor rate variance. METRO FASHIONS, INC Direct-Labor Variances For November Lot No N43 N42 N44 Total Direct-labor rate variance Actual hours worked Rate paid in excess of standard Variance Record the purchase of direct material on account and the direct-material purchase price variance. 1 2 Record the addition of direct-material cost to work-in- process inventory and the direct-material quantity variance Record the addition of direct-labor cost to work-in- process inventory and the direct-labor variances. work-in 3 process nventory and the direct-iabost 3. Prepare journal entries to record each of the following events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Purchase of material. b. Incurrence of direct-labor cost. c. Addition of direct-material and direct-labor cost to Work-in-Process Inventory. d. Recording of direct-material and direct-labor variances. View transaction list Journal entry worksheet 2 Record the purchase of direct material on account and the direct-material purchase price variance. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journa