final 2/2 please help. i neeed each part answered. im so lost. plz make sure answer isnt cut off. thank you!
Mcknight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,700 coffee mugs per month: E: (Click the icon to view the cost data.) Data table - $ $ 0.05 0.42 Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) Fixed (3 minutes @ $0.13 per minute) GA $ 0.12 0.39 0.51 Total Cost per Coffee Mug $ 0.98 d uses a cost of a month: Actual cost and production information for July 2024 follows: (Click the icon to view actual cost and production information.) Read the requirements. More info h a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,400 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 203,000 minutes at a total cost of $32,480. e. Actual overhead cost was $4,060 variable and $36,740 fixed. f. Selling and administrative costs were $120,000. Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account 5. McKnight intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? 6796 McKnight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,700 coffee mugs per month Click the icon to view the cost data) Actual cost and production information for July 2024 follows: Click the icon to view actual cost and production information) Read the fecuirements 15% 68% 09 44% Requirement 1. Compute the cost and officiency variances for direct materials and direct labor Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorablo (F) or unfavorable (U). (Abbreviations used: AC actual cost, AQ - actual quantity, FOH-food overhead SC standard cost, 90 - standard quantity) Formula Variance Direct materials cont variance Direct labor con variation Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used AC actual con AD actual quantity, FOH - fixed overhead: SC standard cost 80 standard quantity) Formula Variance Direct mortals officiency variance Mcknight manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows Formula Variance Direct materials efficiency variance Direct labor officiency variance Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the purchase of direct materials, including the related varianco. Prepare a single compound journal entry) Accounts and Explanation Debit Jul Date Credit Now, journalize the usage of direct materials including the related variance (Prepare a single compound journal entry) Arrine and Entansi nah Credit McKnight manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows: Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry) Accounts and Explanation Credit Date Debit Jul 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 Jul 6 11 168 McKnight manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows: Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volumo variances Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity, FOH = fixed overhead, SC = standard cost, SQ = standard quantity, VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identity whether each variance is favorable (F) or unfavorable (U). (Abbreviations used AC = actual cos, AQ - actual quantity, FOH - food overhead, SC - standard cost; SQ - standard quantity) Formula Variance 0 44 FOH Cost variance FOH volume variance Prouirement humalize the actual manufacturing overhead and the allocatod manufacturing overhead. Joumalize the movement of all production costs from McKnight manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows: Requirement 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead Journalize the movement of all production costs from Work in Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred, Date Accounts and Explanation Debit Credit Jul Journalize the applied manufacturing overhead Date Accounts and Explanation Debit Credit Jul Actual cost and production information for McKnight manufactures coffee mugs that it sells to other companies for Journalize the applied manufacturing overhead. Date Accounts and Explanation Debit Credit Jul. Journalize the movement of all production from Work-in-Process Inventory Date Accounts and Explanation Debit Credit Jul 159 Joumalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry) Date Accounts and Explanation Debit Credit JUL 68% On 449 Requirements. McKnight intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overallwas the decision Wio? direct labor efficiency vanance, it Hiring more-skilled, higher-paid labor lodo direct labor costvarno. Given the appear that these more-skilled workers performed officiently Requirements. Mcknight intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall was the decision Hiring more-skilled, higher-paid labor led to appear that these more-skilled workers performed officiently direct labor cost variance. Given the direct labor officiency varianco, it The overall net effect is thus management's decision was
