Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

European Styles, Inc., manufactures women's blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in

European Styles, Inc., manufactures women's blouses of one quality, which are produced in lots to fill each special order.
Its customers are department stores in various cities. European Styles sews the particular stores' labels on the blouses.
During November, the company worked on three orders, for which the month's job-cost records disclose the following
data.
The following additional information is available:
The firm purchased 98,000 yards of material during November at a cost of $101,200.
Direct labor during November amounted to $149,100. According to payroll records, production employees were paid
$14.00 per hour.
There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was
issued for lot 24, which was 70 percent completed as to direct labor.
The standard costs for a box of six blouses are as follows:!
Required information
Case 10-49 Direct-Material and Direct-Labor Variances; Job-Order Costing; Journal Entries (Appendix)
(LO 10-1,10-3,10-6,10-9)
[The following information applies to the questions displayed below.]
European Styles, Inc., manufactures women's blouses of one quality, which are produced in lots to fill each special order.
Its customers are department stores in various cities. European Styles sews the particular stores' labels on the blouses.
During November, the company worked on three orders, for which the month's job-cost records disclose the following
data.
The following additional information is available:
The firm purchased 98,000 yards of material during November at a cost of $101,200.
Direct labor during November amounted to $149,100. According to payroll records, production employees were paid
$14.00 per hour.
There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was
issued for lot 24, which was 70 percent completed as to direct labor:
The standard costs for a box of six blouses are as follows:
Direct material
Direct mater Direct labor
Direct labor Production overhead
Standard cost per box
26 yards at
3 hours at
$1
$26.00
41.4
48.00$115.40
For each lot produced during November, complete the following schedules:
a. Direct-material purchase price variance.
b. Direct-material quantity variance.
c. Direct-labor efficiency variance.
d. Direct-labor rate variance.
Complete this question by entering your answers in the tabs below.
For each lot produced in November, complete the following schedule for the direct-material purchase price variance. (Indicate
the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero
variance).)
For each lot produced during November, complete the following schedules:
a. Direct-material purchase price variance.
b. Direct-material quantity variance. c. Direct-labor efficiency variance. d. Direct-labor rate varionce.
d. Direct-labor rate variance.
Complete this question by entering your answers in the tabs below.
Complete this question by entering your answers in the tabs below.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Principles And Practice Of Auditing

Authors: George Puttick, Sandra Van Esch

7th Edition

0702137723, 978-0702137723

More Books

Students also viewed these Accounting questions

Question

Describe the importance of employer branding.

Answered: 1 week ago

Question

Explain corporate sustainability.

Answered: 1 week ago