Cole manufactures coffee mugs that it sets to other companies for customining with their own logos (Click the icon to view the cost data) Actual cost and production information for July 2004 folows (Cack the icon to view actual cost and production information) Cole's standard and actual sales price per mug is $ Cole calculated the following varances and recordind the following entris to an Click the icon to view varances.) Click the icon to view youmat entries) Prepare the standard costing income statement for July 2004 (se a men so a riperating to inter at ether amounts as posive numbers Class Print Operating noe ass Cole Standard Cost income Statement For the Month Ended July 31, 2004 Data table Prepare the standard costing income statement for July 2024 (Use ammus sign or parentheses an operating loss. Enter all other amounts as positive numbers) e Statement July 31, 2024 Cole 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 60,200 coffee mugs per month Direct Materials (0.2 lbs $0.25 per lb) Direct Labor (3 minutes $0.14 per minute) Manufacturing Overhead $ 0.05 0.42 Vanable (3 minuls @ $0.06 per minute) Fixed (3 minutes $0.15 per minute) Total Cost per Coffee Mug Print Done 5 018 0.45 0.63 $ 110 More info X a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,900 coffee mugs. c. Actual direct materials usage was 10,000 lbs, at an actual cost of $0.17 per lb. d. Actual direct labor usage was 202,000 minutes at a total cost of $34,340. e. Actual overhead cost was $11,110 variable and $29,590 fixed. f. Selling and administrative costs were $126,000. Print Done Reference Variance Direct materials cost variance = $ 800 F Direct labor cost variance = $ 6,060 U - X Variance Direct materials efficiency variance = $ SA 645 F Direct labor efficiency variance = 69 $ 1,862 U Variance VOH cost variance $ 69 1,010 F VOH efficiency variance $ 798 U FOH cost variance FOH volume variance S 69 Variance 2,500 U 1,215 F Reference Date Accounts and Explanation Debit Credit Jul Raw Materials Inventory 2,500 Direct Materials Cost Variance 800 Accounts Payable 1,700 Purchased direct materials. Jul Work-in-Process Inventory 3,145 Direct Materials Efficiency Variance 645 Raw Materials Inventory 2,500 Used direct materials. Jul Work-in-Process Inventory 26,418 Direct Labor Cost Variance 6,060 Direct Labor Efficiency Variance 1,862 Wages Payable 34,340 Direct labor costs incurred Jul Manufacturing Overhead 40,700 Various Accounts 40,700 Manufacturing overhead costs incurred Jul Work-in-Process Inventory 39,627 Manufacturing Overhead 39.627 Manufacturing overhead costs allocated. Jul Finished Goods Inventory 69.190 Direct Labor Cost Variance 6,060 Direct Labor Efficiency Variance 1,862 Wages Payable 34,340 Direct labor costs incurred. Jul. Manufacturing Overhead Various Accounts 40,700 40,700 Manufacturing overhead costs incurred. Jul. Work-in-Process Inventory Manufacturing Overhead 39,627 39,627 Manufacturing overhead costs allocated. Jul Finished Goods Inventory 69,190 Work-in-Process Inventory 69,190 Completed goods transferred. Jul. Variable Overhead Efficiency Variance 798 Fixed Overhead Cost Variance 2,500 Variable Overhead Cost Variance 1,010 Fixed Overhead Volume Variance 1,215 Manufacturing Overhead To adjust Manufacturing Overhead 1,073 Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance