Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs ( I . e . , direct materlals

image text in transcribed
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (I.e., direct materlals and
direct labor) of its single product are:
Material
(5 kilograms $8.00 per kilogram)
Labor
(5 hours $17.20 per hour)
$40.00
86.00
All materlals are added at the beginning of processing. The following data were taken from the company's records for November:
Requlred:
Compute for November:
a. The direct labor efficlency varlance. Is this varlance favorable (F) or unfavorable (U)?
b. The direct labor rate varlance. Is this varlance favorable (F) or unfavorable (U)?
c. The actual number of kilograms of materlal used In the production process during the month.
d. The actual price pald per kilogram of materlal during the month, the company calculates the direct materlals price varlance at point
of purchase.
e. The amount of direct materlals cost and direct labor cost transferred to the Finished Goods Inventory account.
f. The total amount of direct materlals cost and direct labor cost in the Work-In-Process Inventory account at the end of the month.
Prepare journal entrles to record all transactions, Including the varlances in requirement 1.
Complete this question by entering your answers in the tabs below.
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.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Libby, Short

6th Edition

978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881

Students also viewed these Accounting questions