Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are: Material Labor (6 kilograms x $6.00 per kilogram) (5 hours $19.20 per hour) $ 36.00 96.00 All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory Units completed Budgeted output Purchases of materials None 760 units, 75% complete as to direct labor 6,300 units 6,700 units 57,000 kilograms Total actual direct labor costs $ 600,000 33,500 hours Actual direct labor hours Materials usage variance Total materials variance Required: 1. Compute for November: $ 2,400 Unfavorable $ 690 Unfavorable a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number of kilograms of material used in the production process during the month. d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase. e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account. f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month. 2. Prepare journal entries to record all transactions, including the variances in requirement 1. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 1.Compute for November: a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number of kilograms of material used in the production process during the month. d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase. (Round your answer to 3 decimal places.) e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account. f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month. a. Direct labor efficiency variance $ 16,320 Favorable b. Direct labor rate variance $ 43,200 Favorable C. Actual number of kilograms 42,760 kilograms d. Actual price paid per kilogram of material $ 5.958 e. Amount transferred to the finished goods Inventory account $ 831,600 f. Ending inventory at standard cost $ 82,080 Show less
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started