Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with cost accounting questions. Madzinga's Draperies manufactures curtains. Curtain #4571 requires the following: Direct material standard 10 square yards at $5 per

I need help with cost accounting questions.

image text in transcribedimage text in transcribedimage text in transcribed
Madzinga's Draperies manufactures curtains. Curtain #4571 requires the following: Direct material standard 10 square yards at $5 per yard Direct labor standard 5 hours at $10 per hour During the second quarter, the company purchased 20,400 square yards at a cost of $99,960 and used 19,800 square yards to produce 1,800 Curtain #45715. Direct labor totaled 9,120 hours for $95,760. a. Compute the material price and quantity variances. Note: Do not use a negative sign with your answers. Material price variance $ 0 Favorable 0 0 Material quantity variance $ 0 Unfavorable b. Prepare the journal entries for the purchase and use of direct material. Note: Round amounts to the nearest whole dollar. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit Raw Material Inventory 3 0 0 3 0 0 3 0 0 To record material price variance 3 0 0 3 0 0 3 0 0 To record material quantity variance c. Compute labor rate and labor efficiency variances. Note: Do not use a negative sign with your answers. Note: Round your final answer to the nearest whole dollar. Labor rate variance $ 0 3 Labor efficiency variance $ 0 3 Total labor variance $ 0 3 d. Prepare the journal entry to accrue direct labor cost and record the labor variances for the quarter. Account Debit Credit 3 0 0 3 0 0 3 0 0 3 0 0 To record labor variances Auto Brakes Inc. manufactures brake rotors and has always applied overhead to production using direct labor hours. Recently, company facilities were automated, and the accounting system was revised to show only two cost categories: direct material and conversion. Estimated variable and fixed conversion costs for the current month were $306,000 and $136,800, respectively. Expected output for the current month was 9,000 rotors, and the estimated number of machine hours was 18,000. During July, the firm actually used 16,200 machine hours to make 8,640 rotors while incurring $410,400 of conversion costs. Of this amount, $270,000 was variable cost. Using the four-variance approach, compute the variances for conversion costs. Note: Do not use negative signs with your answers. Fixed Conv. Spending Variance Actual Fixed Conv. - Budgeted Fixed Conv. = Spending Variance $ 0 - $ O = 0 Fixed Conv. Volume Variance Budgeted Fixed Conv. - Applied Fixed Conv. = Volume Variance $ 0 - $ 0 = $ 0 Variable Conv. Spending Variance Actual Var. Conv. - Budgeted Var. Conv. = Spending Variance $ 0 - $ 0 = $ 0 Variable Conv. Efficiency Variance Budgeted Var. Conv. - Applied Var. Conv. = Efficiency Variance $ 0 - $ 0 = $ 0 Please answer all parts of the question.Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 770 hours at an average hourly rate of $250. The firm actually worked 726 hours during the inventory audit process. The total labor variance for the audit was $7,700 unfavorable. a. Compute the total actual payroll. $ 0 b. Compute the labor efficiency variance. Note: Do not use a negative sign with your answer. 0 Labor efficiency variance $' 0 C. Compute the labor rate variance. Note: Do not use a negative sign with your answer. Labor rate variance $ 0 c d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit c ol 0 c l 0' 0 : l 0' o c l 0' 0 To recordilabor variances

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial and Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

12th edition

978-1133952428, 1285078578, 1133952429, 978-1285078571

Students also viewed these Accounting questions