Pexible Budget, Standard Cost Variances, T-Accounts Ingies Company manufactures external hard drives. At the begianing of the period, the follawing plans for preduction and costs were reveased: During the year, 24, 300 units were produced and sold. The following actual costs were incurredi: There were no beginning or ending imenteries of direct materials, The direct materials price varlance was $9,472 unfavorable. In producing the 24,800 units, a tatal of 12.772 hours were worked, 3 percent more hours than the standard allawed for the actual output. Overhead costs are applied to productibn using ditect labor heurs. Required: Instructions for parts 1 and 2: If a variance is zero, enter "o" and celect "Not applicable" from the drop down box; 1. Prepare a performance report comparing expected costs to actual costs. 2. Determine the following. If a variance amount is zero, enter " 07 and select "Not applicable" from the drop-down list. d. Fixed overhead spending and volume variances: Spending variance Volume variance e. Variable overhead spending and efficiency variances Variable overnead spending variance Variable overhead efficiency variance: 3. Use T-accounts to show the flow of costs through the system. In showing the fow, you do not need to show detailed overhead variances, show only the over- and underapplied variances for fixed and variathe overthead. Record the following transactions in the T-accounts: If an amount is zero, enter " 0 ". (a) purchase of materials, (b) issuance of materials into production, (c) incurrence of direct tabor cost, (d) application of variable overhead cost to production, (e) application of fixed overhead cost to production, (f) transfer of kinished goods to finished goods inventory. (g) sale of goods, (h) cosure of Direct Materials Price Varlance account, (h) dosure of Direct Materials Price Variance account, (i) cosure of birect Materiats usage Variance account, (1) closure of Direct Labor Efticiency Variance account, (k) ciosure of Variable Ovechead Control account, and (1) dosure of Flxed Overheed Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable \begin{tabular}{c} Weges Payable \\ \hline \end{tabular} Direct Labor Rate Variance Direct Labor Efficiency Variance Variable Overhead Control Variable Overhead Control Fixed Overhead Control Cost of Goods Sold Pexible Budget, Standard Cost Variances, T-Accounts Ingies Company manufactures external hard drives. At the begianing of the period, the follawing plans for preduction and costs were reveased: During the year, 24, 300 units were produced and sold. The following actual costs were incurredi: There were no beginning or ending imenteries of direct materials, The direct materials price varlance was $9,472 unfavorable. In producing the 24,800 units, a tatal of 12.772 hours were worked, 3 percent more hours than the standard allawed for the actual output. Overhead costs are applied to productibn using ditect labor heurs. Required: Instructions for parts 1 and 2: If a variance is zero, enter "o" and celect "Not applicable" from the drop down box; 1. Prepare a performance report comparing expected costs to actual costs. 2. Determine the following. If a variance amount is zero, enter " 07 and select "Not applicable" from the drop-down list. d. Fixed overhead spending and volume variances: Spending variance Volume variance e. Variable overhead spending and efficiency variances Variable overnead spending variance Variable overhead efficiency variance: 3. Use T-accounts to show the flow of costs through the system. In showing the fow, you do not need to show detailed overhead variances, show only the over- and underapplied variances for fixed and variathe overthead. Record the following transactions in the T-accounts: If an amount is zero, enter " 0 ". (a) purchase of materials, (b) issuance of materials into production, (c) incurrence of direct tabor cost, (d) application of variable overhead cost to production, (e) application of fixed overhead cost to production, (f) transfer of kinished goods to finished goods inventory. (g) sale of goods, (h) cosure of Direct Materials Price Varlance account, (h) dosure of Direct Materials Price Variance account, (i) cosure of birect Materiats usage Variance account, (1) closure of Direct Labor Efticiency Variance account, (k) ciosure of Variable Ovechead Control account, and (1) dosure of Flxed Overheed Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable \begin{tabular}{c} Weges Payable \\ \hline \end{tabular} Direct Labor Rate Variance Direct Labor Efficiency Variance Variable Overhead Control Variable Overhead Control Fixed Overhead Control Cost of Goods Sold
