Question
Direct materials cost variance $115 U Direct materials efficiency variance 840 F Direct labor cost variance 700 F Direct labor efficiency variance 6,450 F Variable
Direct materials cost variance | $115 | U |
Direct materials efficiency variance | 840 | F |
Direct labor cost variance | 700 | F |
Direct labor efficiency variance | 6,450 | F |
Variable overhead cost variance | 1,000 | U |
Variable overhead efficiency variance | 1,000 | F |
Fixed overhead cost variance | 700 | U |
Fixed overhead volume variance | 2,600 | F |
Standards:
3 yards of cloth per unit at $1.20 per yard
2 direct labor hours per unit at $10.75 per hour
Overhead allocated at $5.00 per direct labor hour
Actual:
2,300 yards of cloth were purchased at $1.25 per yard
Employees worked 1,400 hours and were paid $10.25 per hour
Actual variable overhead was $1,600
Actual fixed overhead was $6,500
Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.)
Date Accounts and Explanation Debit Credit
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