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I need help with my journal entries. Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as
I need help with my journal entries.
Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows: Direct materials: 2 metres at $3 per metre Direct labour: 1 hour at $4.50 per hour Variable manufacturing overhead: 1 hour at $3 per hour Fixed manufacturing overhead: 1 hour at $5 per hour Total standard variable cost per unit $6.ee 4.50 3.ee 5.ee $18.50 During October 6,000 units were produced. Selected data relating to the month's production follow: $57,000 Materials purchased: 20,eee metres at $2.85 per metre Materials used in production: 12,650 metres Direct labour : ? hours at $? per hour Variable manufacturing overhead cost incurred Variable manufacturing overhead efficiency variance Denominator level of activity for October Fixed manufacturing overhead budget variance $27,950 $20,475 $ 1,500 u 6,200 hours 1,000 u There was no beginning Inventory of raw materials. The variable and fixed manufacturing overhead rates are based on direct labour- hours. Required: 1. For direct materials: a. Compute the price and quantity varlances for October. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).) There was no beginning Inventory of raw materials. The variable and fixed manufacturing overhead rates are based on direct labour- hours. Required: 1. For direct materials: a. Compute the price and quantity variances for October. (Indicate the effect of each verlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).) S 3.000 F Price variance Quantity variance S 1.950 0 b. Prepare Journal entries to record activity for October. View transaction list Journal entry worksheet Record the materials price variance. Note: Enter debits before credits. Event General Journal Debit Credit 1 57.000 Raw materials Accounts payable Materials price variance 60,000 3,000 Record entry Clear entry View general journal b. Prepare journal entries to record activity for October. View transaction list Journal entry worksheetStep by Step Solution
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