Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 92,000 tires for $40 each. Budgeted production was 100,000 tires. Standard variable costs per tire follow Direct materials: 4 pounds at $2 Direct labor: 0.4 hours at $18 Variable production overhead: 0.18 machine-hours at $10 per hour Total variable costs $ 8.00 7.20 1,80 $17.00 Na he Fixed production overhead costs: Monthly budget $1,350,000 Fixed overhead is applied at the rate of $15 per tire Actual production costs: Direct materials purchased and used: 384,000 pounds at $1 80 Direct labor 35,200 hours at $18.40 Variable overhead 17,280 machine-hours at $10 20 per hour Fixed overhead $ 691,200 647,680 176,256 46.256 1.360.000 Required: a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions, (Indicate the effect of each variar effect, do not select either option.) Actual costs Actual inputs at standard price Flexible budget & Answer is complete but not entirely correct. Direct Materials Direct Labor Variable Overhead $ 691,000 $647.680 $ 176 256 $ 768,000 S 633 600 $ 172,800 $ 736,000 S 662,400 $ 165,600 Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Cost variance & Answer is complete but not entirely correct. Variable Direct Materials Direct Labor Overhead $ 691,000 $ 647,680 s 176,256 $ 768,000 $ 633,600 $ 172,800 $ 736,000 $662,400 S $ 165,600 $ (76,800) F $ 14,080 U $ 3,456U $ 32,000 U S (28,800) F $ 7,200U $ (44,800) F S (14.720) FOs 10,656U b. Prepare a fixed overhead cost variance analysis, (Indicate the effect of each variance by selecting "F" for favorable, on & Answer is complete but not entirely correct. Total Fixed overhead coat variance $10,000 c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing Assume that all varian no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Event Debit General Journal Work-in-process inventory Materials efficiency variance Materiale price variance 736,000 32000 Variable overhead (applied) Variable overhead price variance Variable overhead efficiency variance Variable overhead (actual) Variable overhead (actual) 165,600 3,456 7,200 176,256 1,380,000 Work-in-process inventory Fixed overhead (applied) 1,380,000 Fixed overhead (actual) Miscellaneous payables and inventory accounts o 1,360,000 1,360,000 Fixed overhead (applied) Fixed overhead price variance Fixed overhead production volume variance Fixed overhead (actual) 1,380,000 10,000 30,000 1,360,000 Finished goods inventory Work-in-process inventory 2.954,000 E 2,954,000 Accounts receivable Sales revenue 3,680,000 0 00 00 00 3.680,000 Cost of goods sold Finished goods Inventory 2.954,000 3 2.954 000 88 Fixed overhead production volume variance 30,000
