Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets @ $4 4 $16 Capper 3 sheets $8 24 Dirert labar 7 hours $16 112 Variable overhead 5 machine hour $4 30 Fixed overhead machine hour's S4 211 Overhead rates were based on normal monthly capacity of 4,800 machine hours. During November, the company produced only 680 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aurinum 2,200 sheets purchased $3.90 Used 2.800 sheets Copper 2,400 sheets purchased & $8.40 Used 2,000 sheets Direct Labor Regular time 4,160 hours $16 pre contract settimenti Popular time 720 hours $17 post contract settlement) Variable Overhead S14,6:40 based on 2,840 machine hours) Fixed Overhead $15,080 mased on 3340 machine hours) a. Determine the following variances for November Note: Do not use negative signs with your answers. a. Total material orice variance $ 320 6. Total material usage quantity) variances 3 X c. Labor rate variance $ 0 X U d. Labor efficiency variances O x # e Variable overhead spending variance $0 x F F f.Variable overhead efficiency variance $ 0 8. Fixed overhead spending variance $ O x F h. Volume variances 0 x U 1. Budget variances o XF 1. Budget variance $ 0 X F b. Prepare the journal entries to record the standard costing information for November. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Credit Debit 0 x 0 X 0 OX x 0 0 X 0x 0 0X 0 0 OX 0 x 0 0X 0 0 0 x 0 x 0 0 x 0 0 x + x 0 Account Aluminum Material Inventory Aluminum Material Price Variance Accounts Payable To record aluminum price variance Work in Process Inventory Aluminum Material Quantity Variance Aluminum Material Inventory To record copper price variance Work in Process Inventory Copper Material Quantity Variance Copper Material Inventory To record aluminum quantity variance Work in Process Inventory Accounts Payable Accounts Payable To record copper quantity variance Work in Process Inventory Labor Rate Variance Labor Efficiency Variance Wages Payable To record labor variances Work in Process Inventory Variable OH Spending Variance Variable OH Spending Variance Variable OH Control To record variable overhead variances Accounts Payable Variable OH Efficiency Variance Variable OH Efficiency Variance Variable OH Efficiency Variance To record fixed overhead variances X 0x 0 OX 0 X 0 X 0 0 0 x 0 x 0 X 0 0 x X 0 0 X 0 0 x OX 0 0X 0 0 0 x x 0 0 X Check Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets @ $4 4 $16 Capper 3 sheets $8 24 Dirert labar 7 hours $16 112 Variable overhead 5 machine hour $4 30 Fixed overhead machine hour's S4 211 Overhead rates were based on normal monthly capacity of 4,800 machine hours. During November, the company produced only 680 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aurinum 2,200 sheets purchased $3.90 Used 2.800 sheets Copper 2,400 sheets purchased & $8.40 Used 2,000 sheets Direct Labor Regular time 4,160 hours $16 pre contract settimenti Popular time 720 hours $17 post contract settlement) Variable Overhead S14,6:40 based on 2,840 machine hours) Fixed Overhead $15,080 mased on 3340 machine hours) a. Determine the following variances for November Note: Do not use negative signs with your answers. a. Total material orice variance $ 320 6. Total material usage quantity) variances 3 X c. Labor rate variance $ 0 X U d. Labor efficiency variances O x # e Variable overhead spending variance $0 x F F f.Variable overhead efficiency variance $ 0 8. Fixed overhead spending variance $ O x F h. Volume variances 0 x U 1. Budget variances o XF 1. Budget variance $ 0 X F b. Prepare the journal entries to record the standard costing information for November. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Credit Debit 0 x 0 X 0 OX x 0 0 X 0x 0 0X 0 0 OX 0 x 0 0X 0 0 0 x 0 x 0 0 x 0 0 x + x 0 Account Aluminum Material Inventory Aluminum Material Price Variance Accounts Payable To record aluminum price variance Work in Process Inventory Aluminum Material Quantity Variance Aluminum Material Inventory To record copper price variance Work in Process Inventory Copper Material Quantity Variance Copper Material Inventory To record aluminum quantity variance Work in Process Inventory Accounts Payable Accounts Payable To record copper quantity variance Work in Process Inventory Labor Rate Variance Labor Efficiency Variance Wages Payable To record labor variances Work in Process Inventory Variable OH Spending Variance Variable OH Spending Variance Variable OH Control To record variable overhead variances Accounts Payable Variable OH Efficiency Variance Variable OH Efficiency Variance Variable OH Efficiency Variance To record fixed overhead variances X 0x 0 OX 0 X 0 X 0 0 0 x 0 x 0 X 0 0 x X 0 0 X 0 0 x OX 0 0X 0 0 0 x x 0 0 X Check
