Freshman Corn Hole is a small business that Marcus Morris developed while in college. He began building wooden corn hole game sets for friends, hand painted with college colors and logos. As demand grew, he hired some workers and began to manage the operation. Freshman Corn hole maintains two departments: contstruction and painting. In the construction department, the games require wood and labor. Freshman Corn Hole has some employees who have been with the company for a very long time and others who are new and inexperienced. i (Click the icon to view more information.) More Info Read the requirements. i Hirect Requirement 1. For the construction department, calcu manufacturing labor. Label each variance as favorable Begin by calculating the price and efficiency variances f Freshman Corn Hole uses standard costing for the game sets. Marcus expects that a typical set should take 4 hours of labor in the construction department, and the standard wage rate is $10.00 per hour. An average set uses 23 square feet of wood, allowing for a certain amount of scrap. Because of the nature of the wood, workers must work around the flaws in the materials. Marcus shops around for good deals and expects to pay $3.90 per square foot. Price variance Efficiency variance Marcus does not store inventory, and buys the wood as he receives an order. Calculate the price and efficiency variances for direct m Price variance For the month of September, Marcus's workers produced 50 corn hole sets using 206 hours and 1,550 square feet of wood. Marcus bought wood for $5,500 (and used the entire quantity), and incurred labor costs of $1,965. Efficiency variance Requirement 2. Record the journal entries for the varia Print Done Prepare the journal entry for the direct materials price v laun Requirement 2. Record the journal entries for the variances incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the direct materials price variance. Journal Entry Date Accounts Debit Credit Next prepare the journal entry for direct materials efficiency variance. Journal Entry Date Accounts Debit Credit Now prepare the journal entry for direct manufacturing labor price and efficiency variances. Journal Entry Date Accounts Debit Credit Requirement 3. Discuss logical explanations for the combination of variances that Freshman experienced. Marcus paid for the wood. As a result, the wood was quality and workers used of it. Marcus used experienced workers in September than he usually does. This resulted in payment of wages per hour. The new workers were efficient and took hours than normal. Overall, Marcus's total wage bill was than expected
