Part 6 focuses on Standard Job Order Costing with Variance Analysis and Im in need of help for the yellow boxes.
Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $30.00 $ 1,125 000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses Fored Variable (Commission per unit) Administrative Expenses Fixed Variable @ Total Selling and Administrative Expenses Net Profit $3.00 $ 98,000.00 $ 23,000.00 75,000.00 $42.000.00 50.000,00 $2.00 92.000.00 3 190,000.00 135.000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67.500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ 3000 @ $16.00 $30.00 $ 90.000.00 200.210.00 $ 20,000.00 6,800.00 Foxed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13.200.00 $ 213.410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 $ 159.410.00 213.410.00 Page 14 PART 6 Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders Standards Lamp Kits Direct Labor Variable Overhead - Foed Overhead Total $16000000 per lamp 2400000 per lamp (4 lampshe.) 0.250000 per lamp (4 lampsh.) 10000000 per lamp $26.650000 *Fored overhead is based on expected production of 4,007 customized lamps each month To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences Job Order Costing Section On January 1, 20x2. Division S began Job 1101 for the Cient, THE BIG CHILDREN STORE. The jab called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,025 Lamp Kits @ $16.60 per kit 9-Jan 4, 125 sets of Lamp Kits were requisitioned. 17 Jan Payroll of 600 Direct Labor Hours $9.85 per hour 30-Jan Payroll of 650 Direct Labor Hours $10.10 per hour 30 Jan 3,993 lamps were completed and shipped. All materials requisitioned were used or scrapped Month End Owerhead Information Actual Variable Overhead Actual Fixed Overhead $ 1,575.00 $ 40,373.45 Page 15 Rodriguez How many Lamps were completed? Note: Show favorable variances as negative numbers What was the total material price variance for the Lamp Kits purchased [15.011 What was the material usage variance for Lamp ? (15.02) What was the direct labor efficiency variance ? (1503) What was the direct laborate variance? (1504) Page 16 Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance? (1601) What was the variable OH spending variance? 1602) (1603) What is the forced OH volume (denominator) varian (16.04) What is the fixed OH spending variance
