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Madzingas Draperies manufactures curtains. Curtain #4571 requires the following: Direct material standard 10 square yards at $5 per yard Direct labor standard 5 hours at

Madzingas Draperies manufactures curtains. Curtain #4571 requires the following:

Direct material standard 10 square yards at $5 per yard
Direct labor standard 5 hours at $10 per hour

During the second quarter, the company purchased 20,400 square yards at a cost of $99,960 and used 19,800 square yards to produce 1,800 Curtain #4571s. Direct labor totaled 9,120 hours for $95,760. a. Compute the material price and quantity variances. Note: Do not use a negative sign with your answers.

Material price variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Material quantity variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable

b. Prepare the journal entries for the purchase and use of direct material. Note: Round amounts to the nearest whole dollar. Note: Record any multiple debits or any multiple credits in alphabetical order by account name.

Account Debit Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record material price variance
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record material quantity variance

c. Compute labor rate and labor efficiency variances. Note: Do not use a negative sign with your answers. Note: Round your final answer to the nearest whole dollar.

Labor rate variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Labor efficiency variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Total labor variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable

d. Prepare the journal entry to accrue direct labor cost and record the labor variances for the quarter.

Account Debit Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record labor variances

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