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Flexible Budget, Standard Cost Variances, T-Accounts Ingles Company manufactures external hard drives. At the beginning of the period, the following plans for production and costs

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Flexible Budget, Standard Cost Variances, T-Accounts Ingles Company manufactures external hard drives. At the beginning of the period, the following plans for production and costs were revealed: During the year, 24,800 units were produced and sold. The following actual costs were incurred: There were no beginning or ending inventories of direct materials. The direct materials price variance was $9,572 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output-overhead costs are applied to production using direct labor hours. Required: Instructions for parts 1 and 2 : If a variance is zero, enter " 0 and select "Not applicable" from the drop down box. 3. Use T-accounts to show the flow of costs through the system. In showing the flow, you do not need to show detailed overhead variances. Show only the over- and underapplied variances for fixed and variable overhead. Record the following transactions in the T-accounts: If an amount is zero, enter 0. (a) purchase of materials. (b) issuance of materials into production, (c) incurrence of direct tabor cost, (d) application of variable overhead cost to production, (e) application of fixed overhead cost to production, (f) transfer of finished goods to finished goods inventory, (a) sale of goods, (h) closure of Direct Materials Price Variance account, (i) closure of Direct Materials Usage Variance account, (j) closure of Direct Labor Efficiency Variance account, (k) closure of Variable Overhead Control account, and (1) closure of Fixed Overhead Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Materials Materials Feodback TOheck My Work Partially correct Work in Process Feodback r Check My Work Partially correct Feedback Direct Materials Price Variance (a) 10,168(h) Feedback T Check My Work Partially correct Direct Materials Usage Variance Feedoack T. Check My Work Correct Accounts Payable (a) 4x Feedback Wages Payable (c) Feedback T Check My Work Partially correct Direct Labor Rate Variance (c) 0 Feedback r Chock My Work Corroct Direct Labor Efficiency Variance (c) (k) Feedoack 7 Check My Work Partially correct Fixed Overhead Control Feedback TCheck My Wok Partially correct

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