Juda manufactures coffee mugs that it sells to other companies for customizing with their own logos. Juda prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,700 coffee mugs per month:
Requirements Data Table $ 0.05 0.39 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account 5. Juda intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.13 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) Fixed (3 minutes @ $0.14 per minute) $ 0.12 0.42 0.54 $ 0.98 Total Cost per Coffee Mug Print Done Print Done W P23-28A (similar to) Question Help 0 Juda manufactures coffee mugs that it sells to other companies for customizing Actual cost and production information for July 2018 follows: with their own logos. Juda prepares flexible budgets and uses a standard cost (Click the icon to view actual cost and production information.) system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,700 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) Formula Variance Direct materials cost variance (AC-SC) * AQ = $ 800 F Direct labor cost variance (AC-SC) AQ $ 4,060U Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance (AQ - SQ) * SC $ 620 F Direct labor efficiency variance (AQ - SQ) SC $ 2,054 U Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul. Choose from any list or enter any number in the input fields and then click Check Answer. 10 parts Clear All Check Answer remaining Requirements Data Table $ 0.05 0.39 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account 5. Juda intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.13 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) Fixed (3 minutes @ $0.14 per minute) $ 0.12 0.42 0.54 $ 0.98 Total Cost per Coffee Mug Print Done Print Done W P23-28A (similar to) Question Help 0 Juda manufactures coffee mugs that it sells to other companies for customizing Actual cost and production information for July 2018 follows: with their own logos. Juda prepares flexible budgets and uses a standard cost (Click the icon to view actual cost and production information.) system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,700 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) Formula Variance Direct materials cost variance (AC-SC) * AQ = $ 800 F Direct labor cost variance (AC-SC) AQ $ 4,060U Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance (AQ - SQ) * SC $ 620 F Direct labor efficiency variance (AQ - SQ) SC $ 2,054 U Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul. Choose from any list or enter any number in the input fields and then click Check Answer. 10 parts Clear All Check Answer remaining
