Data P10-1 Part II Maple Products, Ltd. Manufactures a super-strong hockey stick. Standard costs for one hockey stick follow: MAPLE PRODUCTS, LTD. Std Quantity Std Price Totals Standard cost of one unit or Hours or Rate ft $3.00 Direct materials Direct labor hr Variable manufacturing overhead hr $1.30 Total standard variable cost per unit $27.00 Units produced and sold last year 8.000 Selected cost data related to last year's operations Cr. Accounts payable, material purchased (60,000 ft.) $174,000 Wages Payable Hours) $79,200 Work in process-direct materials $115,200 Direct labor rate variance $3,300 Variable overhead efficiency variance $650 Variable manufactured OH cost incurred last year $19,800 Direct materials usage in excess of standard 0.20 per stick Relates to the actual direct labor cost for the year. The following additional information is available for last year's operations a. No materials were on hand at the start of last year. Some of the materials purchased during the year were still on hand in the warehouse at the end of the year. b. The variable manufacturing overhead rate is based on direct labor-hours. Total actual variable overhead cost for last year was $19,800. c. Actual direct materials usage for last year exceeded the standard by 0.2 feet per stick. Required 1. For direct materials: a. Compute the price and quantity variances for last year. b. Prepare journal entries to record all activities relating to direct materials for last year. 2. For direct labor: a. Verify the rate variance given above and compute the efficiency variance for last year. b. Prepare a journal entry to record activity relating to direct labor for last year. 3. Compute the variable overhead spending variance for last year and verify the variable overhead efficiency variance given above. Data P10-1 Part II Maple Products, Ltd. Manufactures a super-strong hockey stick. Standard costs for one hockey stick follow: MAPLE PRODUCTS, LTD. Std Quantity Std Price Totals Standard cost of one unit or Hours or Rate ft $3.00 Direct materials Direct labor hr Variable manufacturing overhead hr $1.30 Total standard variable cost per unit $27.00 Units produced and sold last year 8.000 Selected cost data related to last year's operations Cr. Accounts payable, material purchased (60,000 ft.) $174,000 Wages Payable Hours) $79,200 Work in process-direct materials $115,200 Direct labor rate variance $3,300 Variable overhead efficiency variance $650 Variable manufactured OH cost incurred last year $19,800 Direct materials usage in excess of standard 0.20 per stick Relates to the actual direct labor cost for the year. The following additional information is available for last year's operations a. No materials were on hand at the start of last year. Some of the materials purchased during the year were still on hand in the warehouse at the end of the year. b. The variable manufacturing overhead rate is based on direct labor-hours. Total actual variable overhead cost for last year was $19,800. c. Actual direct materials usage for last year exceeded the standard by 0.2 feet per stick. Required 1. For direct materials: a. Compute the price and quantity variances for last year. b. Prepare journal entries to record all activities relating to direct materials for last year. 2. For direct labor: a. Verify the rate variance given above and compute the efficiency variance for last year. b. Prepare a journal entry to record activity relating to direct labor for last year. 3. Compute the variable overhead spending variance for last year and verify the variable overhead efficiency variance given above
