P23-28A Computing and journalizing standard cost variances Moss manufactures coffee mugs that it sells to other companies for customizing wih the trade-off be their own logos. Moss prepares flexible budgets and control manufacturing costs. The standard unit cost budget volume of 59,800 coffee mugs per month: standard cost system to of a coffee mug is based on saic uses a $ 0.05 Direct Materials (0.2 lbs. $0.25 per lb.) 0.33 Direct Labor (3 minutes @$0.11 per minute) Manufacturing Overhead: Variable (3 minutes@ $0.06 per minute) $ 0.18 0.39 0.57 Fixed (3 minutes@$0.13 per minute) $ 0.95 Total Cost per Coffee Mug Actual cost and production information for July 2018 follows: beginning or ending inventory balances. All expenditures were on a. There were no account. 62,500 coffee mugs. b. Actual production and sales were actual cost of $0.17 per lh 11,000 lbs. at an c. Actual direct materials usage was 197,000 minutes at a total cost of $25,610. d. Actual direct labor usage was Actual overhead cost $10,835 variable and $29,765 fixed. e. was f. Selling and administrative costs were $95,000. Requirements 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 direcr 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. Moss intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? . D..I 1