costs. The standard unit cost of a coffee mug is based on static budget volume of $59,700$ coffee mugs per month:

View the standard cost data.

Actual cost and production informa

View the actual cost and productio

Requirements

Read the requirements.

Requirement $1.$ Compute the cost

quantity allowed.$)$

Begin with the cost variances. Sele

Compute the cost and efficiency variances for direct materials and direct

labor.

Journalize the purchase and usage of direct materials and the assignment of

direct labor, including the related variances.

For manufacturing overhead, compute the variable overhead cost and

efficiency variances and the fixed overhead cost and volume variances.

Journalize the actual manufacturing overhead and the allocated

manufacturing overhead. Journalize the movement of all production costs

from Work$-$in$-$Process Inventory. Journalize the adjusting of the Manufacturing

Overhead account.

Actual Cost and Production Information

Direct materials cost variance

Direct labor cost variance

Select the required formulas, comr

Java Mug Company intentionally hired more highly skilled workers during

July. How did this decision affect the cost variances? Overall, was the

decision wise?

Direct materials efficiency variance

Direct labor efficiency variance

Requirement $2.$ Journalize the pul

entry table.$)$

Standard Cost Data

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