Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Our company makes riding lawn mowers and ATVs. Each vehicle uses 4 tires. There are no spares. Direct materials Direct labor Standards per vehicle 4
Our company makes riding lawn mowers and ATVs. Each vehicle uses 4 tires. There are no spares. Direct materials Direct labor Standards per vehicle 4 tires/car @ $6 per tire (There is no spare tire.) .1 hour of input at $30 per hour Actual performance for February 2020 Actual number of vehicles manufactured 8,000 Material purchased 35,000 tires at $5.95 per tire on Feb. 1 Material used 32,100 tires (some were damaged during installation and had to be replaced) for the month ended Feb. 28 (All tires used are recorded at end of month.) Direct labor 795 hours @ 31.10 per hour For each variance, be sure to indicate favorable (F), or unfavorable (U). The Material price variance is $ The Material efficiency variance is $ The Labor rate (price) variance is $ The Labor efficiency variance is $ Give the journal entries for all materials and labor transactions, including variances. Be sure to use proper form, including dates
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started