Middleton manufactures coffee mugs that it sells to other companies for customizing with their own logos !!! (Click the icon to view the cost data) Actual cost and production information for July 2024 follows (Click the icon to view actual cost and production information.) Middleton's standard and actual sales price per mug is $500 Middleton Standard Cost Income Statement For the Month Ended July 31, 2024 Gross Profit Data table Middleton prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month $ 0.05 "0.42 Direct Materials (0.2 lbs @ $0.25 per ib) Direct Labor (3 minutes @ $0.14 per minute) Manufacturing Overhead Variable (3 minutes @ $0.06 per minute) 0.18 0.89 Fixed (3 minutes @ $0.13 per minute) 0.57 Total Cost per Coffee Mug 1.04 More info a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,500 coffee mugs. c. Actual direct materials usage was 11,000 lbs at an actual cost of $0.17 per lb. d. Actual direct labor usage was 197,000 minutes at a total cost of $33,490. e. Actual overhead cost was $10,835 variable and $29,965 fixed. f. Selling and administrative costs were $130,000 Reference Variance 11 Direct materials cost variance $ 880 F Direct labor cost variance = $ 5,910 U Variance $ 375 F Direct materials efficiency variance Direct labor efficiency variance $ .1,330 U Variance VOH cost variance = $ 985 F VOH efficiency variance = $. 570 U Variance FOH cost variance $ 6,643 U FOH volume variance 11 $ 1,053 F Reference Date Accounts and Explanation Debit Credit Jul. Raw Materials Inventory 2,750 Direct Materials Cost Variance 880 1,870 Jul 3,125 Accounts Payable Purchased direct materials Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory Used direct materials Work-in-Process Inventory 375 2,750 Jul 26,250 Direct Labor Cost Variance 5,910 1,380 33,490 Direct Labor Efficiency Variance Wages Payable Direct labor costs incurred Manufacturing Overhead Various Accounts Jul 40.800 40.800 Manufactrining Overhead costs incurred Reference 33,490 Wages Payable Direct labor costs incurred. Jul 40.800 40.800 Jul 35,625 35 625 Jul 65.000 Manufacturing Overhead Various Accounts Manufacturing overhead costs incurred Work-in-Process Inventory Manufacturing Overhead Manufacturing overhead costs allocated Finished Goods Inventory Work-in-Process Inventory Completed goods transferred Variable Overhead Efficiency Variance Fixed Overhead Cost Variance ID Variable Overhead Cost Varance Fixed Overhead Volume Variance Manufacturing Overhead To adjust Manufacturing Overhead 65,000 Jul 570 6.643 985 1.053 5175 Middleton calculated the following variances and recorded the following entries for July 2024. (Click the icon to view variances) (Click the icon to view journal entries.) Prepare the standard costing income statement for July 2024. (Use a minus sign or parentheses to enter any contra expenses and/or an operating loss. Enter all other amounts as positive numbers.) to
