- 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 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 198,000 minutes at a total cost of $31,680. e. Actual overhead cost was $6,930 variable and $33,470 fixed. f. Selling and administrative costs were $126,000. Data Table $ 0.05 0.42 Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) Fixed (3 minutes @ $0.13 per minute) $ 0.12 0.39 0.51 Total Cost per Coffee Mug 0.98 Print Done 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account 5. Stenback intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done Stenback manufactures coffee mugs that is to other companies for customizing with their own logos Stenback prepares flexible budgets and uses a standard cost them to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 50,000 coffee mugs per month Click the loon to wwe cost data) Raw Material inventory 2.500 Actul cost and production Wormation for 2018 Click the loon to view and production form Read the Used direct materials Journalize the incurrance and assignment et direct labor costs, including the related variances (Priportando compound jumalaty) Date Accounts and Explanation Debit Credit Work--Process Inventory 26.250 Direct Labor Coat Variance 3.000 Direct Labor ciency Varance 1,470 Wages Payable 31.580 Direct labor corte incurred Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the feed Overhead cost and volume variances Begin with the variable overhead cost and sciency varies Select the required formulas, compute the variable overhead coat and cancy variance, and identify whetheach arance in favorable For unfavorable (U) (Round any interactions to four decimal places XXX, and your final to the whole do broned. A continuar FOHB SC standard cost SQ = standard quantity. VOH - variable overhead) Formula Variance VOH con variance VOH efficiency variance the input fields and then click Check Answer Requirements. For manufacturing overtread, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume Begin with the variable overhead cost and they are select the required forms, compute the variable overhead cost and decide whether he is bother unfavorable (U). (Round any actions to four decades, XXXnd your final de Art Art Ford SC standard Co - Mandard, VOHV veted) Formula Varance VOH Col variance VOH wtficiency variance Choose from any list or enter any number in the input files and then click Check Awe