CP23-35 Calculating materials and labor variances and preparing journal entries

Assume Daniels has created a standard cost card for each job. Standard direct materials per job include 10 software packages at a cost of $900 per package. Standard direct labor costs per job include 105 hours at $100 per hour. Daniels plans on completing 12 jobs during March 2018.

Annual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 110 hours per job at an average rate of $107 per hour. Daniels completed all 12 jobs in March.

Requirements:

1. Calculate direct materials cost and efficiency variances

2. Calculate direct labor cost and efficiency variances

3. Prepare journal entries to record the use of both materials and labor for March for the company

Please give the step-by-step processing when determining the answers. Please fill in each green box Thank you!

Calculation for AC per Package Calculation for SQ of Packages Direct Materials Cost Variance Direct Materials Efficiency Variance = Requirement 2 Calculation for AQ of Hours Calculation for SQ of Hours Direct Labor Cost Variance = Direct Labor Efficiency Variance = Requirement 3 Date Accounts and Explanation Debit Credit Used Direct Materials Direct Labor costs incurred