Metro Fashions, inc. manufactures womens blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. Metro fashions sews the particular stores labels on the blouses. During November, the company worked on three orders, for which the months job cost records disclose the following data:

Lot Numer	Boxes in Lot	Material used (yards)	Hours worked
N42	1100	23240	4370
N43	1800	37420	7240
N44	1300	27355	3140

The following additional information is available:

The firm purchased 89,000 yards of material during November at a cost of $117,700

Direct labor during November amounted to $236,000. According to payroll records, production employees were paid $16 per hour

There was no work in process on November 1. During November, lots N42 and N43 were completed. All material was issued for Lot N44, which was 60% completed as to conversion. (i.e. direct labor and overhead).

The standard costs for a box of six blouses are as follows:

Direct Material	21 yards at	$1.30	$27.30
Direct Labor	4 hours at	$15.60	$62.40
Production overhead	4 hours at	$13.00	$52.00
Standard Cost per box			$141.70

Complete the following schedule computing the standard cost of lots N42, N43, and N44 for November (Round standard cost per box to 2 decimal places).

Metro Fashions Inc
Standard Cost of Production
For November
Lot	Quantity (boxes)	Standard cost per box	Total standard cost
N42	1100
N43	1800
N44	1300
Standard Cost of Production

Complete the following schedules (indicate the effect of each variable by selecting favorable or unfavorable. Select none or enter 0 for no effect (zero variance). Round to 2 decimal places.

Direct material purchase price variance

Metro Fashions Inc.
Direct Material Purchase Price Variance
For November
Actual Cost of Materials Purchased
Standard Cost of Materials Purchased
Direct-material purchase price variance

Direct Material Quantity Variance

Metro Fashions, inc.
Direct Material Quantity Variances
For November
	Lot Number
	N42		N43		N44		Total
Direct Material Quantity Variance
Standard yards:
Boxes in lot	1100		1800		1300		4200
Standard yards per box
Total standard quantity
Actual yards used
Variance in yards
Standard price
Direct material quantity variance

C. Direct Labor Efficiency Variance

Metro Fashions, inc.
Direct Labor Variances
For November
	Lot Number
	N42		N43		N44		Total
Direct Labor Efficiency Variance
Standard hours:
Boxes in lot
Standard hours per box
Total
Percentage of completion
Total Standard hours
Actual hours worked
Variance in hours
Standard rate
Direct labor efficiency variance

D. Direct labor rate variance

Metro Fashions, inc.
Direct labor Variances
For November
	Lot Number
	N42		N43		N44		Total
Direct labor rate variance
Actual hours worked
Rate paid in excess of standard
Variance

Prepare journal entries to record each of the following events (if no entry is required for a transaction/event, select no journal entry required in the account field

Purchase of material

Incurrence of direct labor cost

Addition of direct material and direct labor cost to work-in-process inventory

Recording of direct material and direct labor variances

Journal Entry Worksheet
Record the purchase of direct material on account and the direct material purchase price variance
Transaction	General Journal	Debit	Credit
1

Journal Entry Worksheet
Record the addition of direct material cost to work-in-process inventory and the direct-material quantity variance
Transaction	General Journal	Debit	Credit
2

Journal Entry Worksheet
Record the addition of direct-labor cost to work-in-process inventory and the direct labor variances
Transaction	General Journal	Debit	Credit
3