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MacGyver Corponation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six -
MacGyver Corponation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in sixgallon drums. Two raw material are used; these are refered to by people in the hesinecs as A and Two types of labor an required also. These are mixers labor class I and packers labor class II You were recently hired by the company president to be the controller. YOu soon learned that MacGyver uses a standardcosting sysicm. Variances are computed and closcd into Cost of Goods Sold monthly Aifer your first month on the foh, you gathered the necessary data to eompute the month's variances for direct material and direct labor. You finishicd everything up by :pm on the including the credit to Cost of Goods Sold for the sum of the variances. You decided to take all your noles home to review them prior to your formal presentation. As an afterthought, you grabbod a drum of Mirncle Goo as well, thinking it could prove useful in some tunanticfpatcd way.
You spent the evening boning up onthe data for your report and were ready to call it a night. As luck would have it though, you knocked over the Miracle Goo as you rose from the kitchen table The stuff splattered everywhere, and, most unfortunately, ruined most of your notes. All that remained legible is the following information.
tableDirect Material A: Quantity Variance,Direct Matcrial : PurchusePrice VarianceDirect Labor I:,Rate Variance,Direct Labor II:Efficency VarianceCost of Good Sold,Accounts Payabletable bog bal fhel
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