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 96,000 tires Standard variable costs per tire follow Direct materials 4 pounds at $3 00 $ 12 00 Direct labor 0 30 hours at $15 50 4 65 Variable production overhead 0 20 machine hours at $18 per hour 3 60 Total variable costs $ 20 25 Fixed production overhead costs Monthly budget $1,442,000 Fixed overhead is applied at the rate of $16 00 per tire Actual production costs Direct materials purchased and used 391,000 pounds at $2 70 $ 1,055,700 Direct labor 21,500 hours at $15 80 339,700 Variable overhead 19,000 machine hours at $18 30 per hour 347,700 Fixed overhead 1,443,000 Required a Prepare a cost variance analysis for each variable cost for Maple Leaf Productions (Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option ) Direct Materials Direct Labor Variable Overhead Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Cost variance b Prepare a fixed overhead cost variance analysis (Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option ) Total fixed overhead cost variance c (Appendix) Prepare the journal entries to record the activity for the last period using standard costing Assume that all variances are closed to cost of goods sold at the end of the operating period c1 Record entry for direct material costs payable and material variances c2 Record entry for direct labor costs payable and labor variances c3 Record the entry for variable overhead applied c4 Record the entry for variable overhead payable c5 Record the variable overhead variances c6 Record the entry for fixed overhead applied c7 Record the entry for fixed overhead payable c8 Record the fixed overhead variances c9 Record entry to transfer finished goods to inventory c10 Record sales on accounts c11 Record cost of goods sold c12 Record the disposition of variances to cost of goods sold

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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

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 96,000 tires.
Standard variable costs per tire follow.


Direct materials: 4 pounds at $3.00	$	12.00
Direct labor: 0.30 hours at $15.50		4.65
Variable production overhead: 0.20 machine-hours at $18 per hour		3.60
Total variable costs	$	20.25

Fixed production overhead costs:

Monthly budget $1,442,000

Fixed overhead is applied at the rate of $16.00 per tire.
Actual production costs:


Direct materials purchased and used: 391,000 pounds at $2.70	$	1,055,700
Direct labor: 21,500 hours at $15.80		339,700
Variable overhead: 19,000 machine-hours at $18.30 per hour		347,700
Fixed overhead		1,443,000

Required: a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

	Direct Materials	Direct Labor	Variable Overhead
Actual costs
Actual inputs at standard price
Flexible budget
Price variance
Efficiency variance
Cost variance

b. Prepare a fixed overhead cost variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Total fixed overhead cost variance

c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to cost of goods sold at the end of the operating period.

c1. Record entry for direct material costs payable and material variances.

c2. Record entry for direct labor costs payable and labor variances.

c3. Record the entry for variable overhead applied.

c4. Record the entry for variable overhead payable.

c5. Record the variable overhead variances.

c6. Record the entry for fixed overhead applied.

c7. Record the entry for fixed overhead payable.

c8. Record the fixed overhead variances.

c9. Record entry to transfer finished goods to inventory.

c10. Record sales on accounts.

c11. Record cost of goods sold.

c12. Record the disposition of variances to cost of goods sold.