Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (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.) Direct materials efficiency variance Direct labor efficiency variance Direct materials cost variance Direct labor cost variance 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.) Variance Date Jul. Formula = Date Jul. Formula 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.) Accounts and Explanation Debit Variance Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Accounts and Explanation Debit Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. Credit Credit Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Accounts and Explanation Debit Credit Date Jul. Journalize th Date Jul. Requireme Begin with th the nearest Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead VOH cost via VOH efficier Raw Materials Inventory Now compu cost; SQ = s Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory COU ant. Variable Overhead Cost Variance Variable Overhead Efficiency Variance Various Accounts Wages Payable uding the related variances. (Prepare a single compound journal entry.) Debit = Credit = overhead cost and efficiency variances and the fixed overhead cost and volume variances. ect the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Variance C Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. Variance t the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard Next Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Accounts and Explanation Debit Credit Date Jul. Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Jul. VOH cost variance VOH efficiency variance Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to the nearest whole dolllar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula = COU at varian = Credit Formula Variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, 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.) Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. Variance 11 Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) VOH cost variance VOH efficiency variance Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to the nearest whole dolllar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula = Now compute the fixed overhead cost; SQ standard quantity.) FOH cost variance FOH volume variance Requirement 4. Journalize the a last line of the journal entry table. Begin by journalizing the entry to Accounts Date Jul. = (AC-SC) AQ (AC-SC) SQ (AQ - SQ) SC (AQ - SQ) * AC Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Bugeted FOH - Allocated FOH Journalize the applied manufacturing overhead. Date Accounts and Explanation Jul. = Debit Variance Variance ed formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard C s incurred. Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. ed manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the Credit Credit Next Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) VOH cost variance VOH efficiency variance Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to the nearest whole dolllar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula FOH cost variance FOH volume variance = = = Date Jul. Formula = Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, 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.) Journalize the applied manufacturing overhead. Date Accounts and Explanation Jul. Variance Debit C Variance Requirement 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. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred. Accounts and Explanation Debit Credit Actual cost and production information for July 2024 follows: (Click the icon to view actual cost and production information.) Read the requirements. Credit Next Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) Date Requirement 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. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred. Accounts and Explanation Debit Credit Jul. Journalize the applied manufacturing overhead. Accounts and Explanation Date Jul. Debit Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Jul. Credit C Credit Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. Next Kyler manufactures coffee mugs that sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Jul. Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Accounts and Explanation Debit Date Jul. Credit The overall net effect is Requirement 5. Kyler intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Hiring more-skilled, higher-paid labor led to direct labor cost variance. Given the direct labor efficiency variance, it thus management's decision was Credit Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. appear that these more-skilled workers performed efficiently. Next Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler 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: (Click the icon to view the cost data.) Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage f 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. Kyler intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print The overall net effect is Done direct labor cost variance. Given the Data table thus management's decision was Requirement 5. Kyler intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Hiring more-skilled, higher-paid labor led to direct labor efficiency variance, it C Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) Fixed (3 minutes @ $0.13 per minute) Total Cost per Coffee Mug Print Actual cost and production information for July 2024 follows: i (Click the icon to view actual cost and production information.) Read the requirements. Done $ 0.12 0.39 $ $ 0.05 0.42 0.51 0.98 X More info a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,400 coffee mugs. C. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 203,000 minutes at a total cost of $34,510. e. Actual overhead cost was $6,090 variable and $34,610 fixed. f. Selling and administrative costs were $130,000. appear that these more-skilled workers performed efficiently. Print Done Next