MONTANA CORPORATION

has the following standard cost sheet for its main product:

The fixed and variable overhead rates were based on expected activity of 3,200 hours.

During the year, the following actual results were recorded:

REQUIRED:

1. Assuming that the company uses a 4-way overhead analysis, compute the following variances for Minnesota Manufacturing

1. Variable overhead spending and efficiency variances
2. Fixed overhead spending (budget) and volume variances

2. Show the journal entries needed to record the application of overhead, actual overhead, overhead variances and disposition of overhead variances under standard costing

3. Assuming that the company uses a 3-way overhead analysis, compute the spending, efficiency and volume variances.

4. Assuming that the company uses a 2-way overhead analysis, compute the budget variance and volume variance.

5. Compute the direct materials price and usage variances, and the direct labor rate and efficiency variances.

6. Record all related journal entries for above.

7. Compute all direct-cost variances and record journal entries for Standard Costing.

MONTANA CORPORATION ... has the following standard cost sheet for its main product: Direct materials Direct labor Variable overhead Fixed overhead 2 feet at 0.5 hours at 0.5 hours at 0.5 hours at $5 per foot $10 per hour $2 per hour $4 per hour $10 $5 $1 $2 Standard unit cost $18 The fixed and variable overhead rates were based on expected activity of 2,500 hours. During the year, the following actual results were recorded: Actual results for year: Production Direct materials purchases Direct labor Variable overhead Fixed overhead 11,750 feet purchased - 11,000 feet used 2,900 hours 6,000 units $61,100 $29,580 $6,000 $10,500 REQUIRED