Flexible Budget, Standard Cost Variances, T-Accounts Ingles Company manufactures external hard drives, At the beginning of the penod, 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 materiais. The direct materials price variance was $9,772 unfavorable. In producing the 24,800 units, a totol 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 perts 1 and 2: If a variance is zero, enter " 0 " and select, "Not applicable" from the drop down boxk. 1. Prepare a performance report comparing expected costs to actual costs: Instructions for parts 1 and 2 : If a variance is zero, enter " 0 and select "Not applicable" from the drop down box, 1. Prepare a performance report comparing expected costs to actual costs. 2. Determine the following. If a veriance amount is zero, enter 7 07 and select "Not applicable" from the drop-down list. a. Direct materials usage variance x x b. Direct Labor rate varience c Direct labor usage variance x d. Fixed overhead spending and volume variences a Uariahle worhesed snendina and nfficiencu variarices 3. Use T-accounts to show the flow of costs through the system. In showing the flow, you do not need to show detailed overheod variances. 5 how 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) parchase of materials: (b) issuance of materials into production, (c) incurrence of direct labor cost, (d) application of variable overhead cost to production, (e) application of fixed overhend cost to production. (e) application of fixed overhead cost to production, (f) transfer of finished goods to finished goods inventory, (g) sale of goods, (h) closure of Direct Materials Price Variance account, (i) closure of Direct Materials Usage Variance account, (j) closure of Direct Labor Eificiency Variance account, (k) closure of Variable Overhead Control account, and (I) closure of Fixed Overhead Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Finished Goods Check My Work Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable Variable overhead Control Check My Wark Direct Labor Rate Variance Fixed Overhead Control Flexible Budget, Standard Cost Variances, T-Accounts Ingles Company manufactures external hard drives, At the beginning of the penod, 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 materiais. The direct materials price variance was $9,772 unfavorable. In producing the 24,800 units, a totol 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 perts 1 and 2: If a variance is zero, enter " 0 " and select, "Not applicable" from the drop down boxk. 1. Prepare a performance report comparing expected costs to actual costs: Instructions for parts 1 and 2 : If a variance is zero, enter " 0 and select "Not applicable" from the drop down box, 1. Prepare a performance report comparing expected costs to actual costs. 2. Determine the following. If a veriance amount is zero, enter 7 07 and select "Not applicable" from the drop-down list. a. Direct materials usage variance x x b. Direct Labor rate varience c Direct labor usage variance x d. Fixed overhead spending and volume variences a Uariahle worhesed snendina and nfficiencu variarices 3. Use T-accounts to show the flow of costs through the system. In showing the flow, you do not need to show detailed overheod variances. 5 how 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) parchase of materials: (b) issuance of materials into production, (c) incurrence of direct labor cost, (d) application of variable overhead cost to production, (e) application of fixed overhend cost to production. (e) application of fixed overhead cost to production, (f) transfer of finished goods to finished goods inventory, (g) sale of goods, (h) closure of Direct Materials Price Variance account, (i) closure of Direct Materials Usage Variance account, (j) closure of Direct Labor Eificiency Variance account, (k) closure of Variable Overhead Control account, and (I) closure of Fixed Overhead Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Finished Goods Check My Work Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable Variable overhead Control Check My Wark Direct Labor Rate Variance Fixed Overhead Control
