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 con to view actual cost and production information Middleton's standard and actual sales price per mug is $5.00 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 signor parentheses to enter any contra expenses andor an operating loss. Enter all other amounts as positive numbers) Reference Middleton Standard Cost Income Statement For the Month Ended July 31, 2024 Date Debit Credit Jul 2.750 380 1,870 Jul 3.125 375 2.750 Jul. 26.250 5.910 1.330 33.490 Jul Accounts and Explanation Raw Materals Inventory Direct Materials Cost variance Accounts Payable Purchased airect materials Work-in-Process Inventory Direct Materals Emiciency Vanance Raw Materials Inventory Used direct materials Worc-in-Process Inventory Direct Labor Cost Variance Direct Labor Efficiency Variance Wages Payable Direct labor costs incurred Manufacturing Overhead Various Accounts Manufacturing overhead coate curred Work in Process Inventory Manufacturing Overhead Manufacturing overhead costs alocated Finished Goods Inventory Work-in-process inventory Completed goods trasferred Variable Overhead Efficiency Variance Foed Overhead Cost Variance Variable Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead To adjust Manufacturing Overhead 40.800 Gross Profit 40.800 Jul . Operating Income (L015) 35625 35.625 - X Data table Jul 65.000 65.000 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 JUL 570 6,643 50.05 0.42 Direct Materials (0.2 ios 80 25 per lb) Direct Labor (3 minutes @50 14 per minute) Manufacturing Overhead Variable 3 minutes @ SO 06 per minute) Fixed (3 minutes @ 50 13 per minute) 3 Total Cost per Coffee Mug 985 1.053 5.175 $ 0.18 0.39 0.57 5 1.04 Print Done Print Done More info Reference Variance 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 Actual overhead cost was $10,835 variable and $29.965 fixed Selling and administrative costs were $130 000 Direct materials cost variance Direct labor cost variance =S = 5 880 F F 5,910 U =$ Direct materials efficiency vanance Direct labor efficiency vanance Variance 375 F 1.330 $ VOH cost variance ( ) Print Done VOH efficiency variance = $ Variance 985 F 570 Variance 6,643 U 1053 F FOH cost variance FOH volume variance = $
