Kyer manufachres coltee mugs that it sols to other companies for customithg with their own Actual cost and peoduction information for July 2024 folowe. logos. Kyler prepares fiexble budgots and uses a standard cost system to control matulacturing (i) IClick the ioon to view actual cost and productien infermation ) costs. The atandard unit cost of a collee mug is based on static budget volume of 59,000 coffee Read the regiliements. (Click the koon ta verw the cost data.) Requirernent 3. For manulacturing overhead, compule the variable overhead cost and efficiency variances and the fxed overhasd cost and volume variancis. Begin with the variable overheod cost and efficiency variances. Seloct the required formulas, compute the variable ovechead cost and efficoncy variances, and identify whether each variance is actual quantity FOH= fixnd overhead; SC a standard cost SQ w standand quantity, VOH= variable overivosd) Now corroute tee fixed overhead cost and volume variances. Soloct the required formulas, compute the foed ovechead cost and volume variances, and identify whethor each variance is trioracle (E) or unfavorable (U). (Abbreviations used: AC - aCtual cost, AQ = actual quantly, FOH= fued erechead; SC= standard cost: sQ = standard quanthy? 1. Compule the cost aryd efficiency varianoos for direct materiale and droct labor 2. Joumalize the purchase and usage of difect materials and the assigninent of diect labor, including the related warlances. 3. For manufactaring overhead, compute the voriable cverhead cost and afficiency variancos and the foxed overtyead cost and wolume variances. 4. Joumalize the actual manufacturing ovarhead and the allocated manufachuring owerhed. Journalire the mowement of all production costs from Work-an.Prosess Invontory. Journalize the adusting of the Manutacturing Overthed acoount. 5. Kyler intentionally hired more highly skilled Workers during July. How did this decision affect the cost variances? Overall, was the decision wise? More info a. There were no beginning or ending invensofy balances. All wxpendrures were on account. b. Actual produsticn and sales were 02.600 ccllee mugs. c. Actual drect araterials usage was 10.000lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 199,000 minutes at a total cost of $31,840. Now compusa tha fixed overhsad cost and volum (F) or unfavorable (U), (Abbreviatons used: AC e. Achual ovethead cost was $3,990 vnriabio and $36,920 frod. 1. Selling and administrative costs wero $126,000
