Please only answer the ones that have an "X" or a blank! Thank you!
Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.25) $10.00 Direct labor (0.15 hr. @ $18.00) 2.70 Fixed overhead (0.15 hr. @ $3.00) 0.45 Variable overhead (0.15 hr. @ $1.70) 0.26 Standard cost per unit $13.41 Overhead rates are computed using practici volume, which is 49,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 408,000 pounds at $1.32 per pound c. Direct materials used: 406,900 pounds d. Direct labor: 10,500 hours at $17.95 per hour e. Fixed overhead: $36,570 f. Variable overhead: $18,000 1. Compute price and usage variances for direct materials. MPV $ 28,560 Unfavorable MUV $1 21,375 Favorable 2. Compute the direct labor rate and labor efficiency variances. Labor Rate Variance $ 525 Favorable Labor Efficiency Variance $ 45,900 Unfavorable 3. Compute the fixed overhead spending and volume variances. Spending Variance 7,170 Unfavorable Volume Variance 2,400 Favorable 4. Compute the variable overhead spending and efficiency variances. Spending Variance $ 150 Unfavorable Efficiency Variance $ 4,335 Unfavorable a. Materials 510,000 0 28,560 0 Direct Materials Price Variance Accounts Payable 0 538,560 510,000 0 b. Work in Process Direct Materials Usage Variance Materials 0 21,375 0 488,625 c. Work in Process 143,100 0 Direct Labor Efficiency Variance 45,900 0 Direct Labor Rate Variance 0 525 Wages Payable 0 188,475 d. Work in Process 45,315 0 0 13,515 Variable Overhead Control Fixed Overhead Control 0 31,800 e. Variable Overhead Control 18,000 0 Fixed Overhead Control 36,570 0 Various Accounts 0 54,570 f. Prepare journal entries for the closing out of variances to Cost of Goods Sold. Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. First, close direct materials and direct labor variances: Cost of Goods Sold 52,560 0 Direct Materials Usage Variance 21,375 0 Direct Labor Rate Variance 525 0 Direct Labor Efficiency Variance 0 Direct Materials Price Variance 0 Second, recognize the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. Variable Overhead Control 0 Fixed Overhead Spending Variance 0 Fixed Overhead Control 0 Fixed Overhead Volume Variance 0 Variable Overhead Efficiency Variance 0 Variable Overhead Spending Variance 0 Third, close the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. Fixed Overhead Volume Variance 9,255 0 Variable Overhead Efficiency Variance 2,400 X 0 Variable Overhead Spending Variance 0 150 Cost of Goods Sold 0 Fixed Overhead Spending Variance 0 7,170 X Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.25) $10.00 Direct labor (0.15 hr. @ $18.00) 2.70 Fixed overhead (0.15 hr. @ $3.00) 0.45 Variable overhead (0.15 hr. @ $1.70) 0.26 Standard cost per unit $13.41 Overhead rates are computed using practici volume, which is 49,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 408,000 pounds at $1.32 per pound c. Direct materials used: 406,900 pounds d. Direct labor: 10,500 hours at $17.95 per hour e. Fixed overhead: $36,570 f. Variable overhead: $18,000 1. Compute price and usage variances for direct materials. MPV $ 28,560 Unfavorable MUV $1 21,375 Favorable 2. Compute the direct labor rate and labor efficiency variances. Labor Rate Variance $ 525 Favorable Labor Efficiency Variance $ 45,900 Unfavorable 3. Compute the fixed overhead spending and volume variances. Spending Variance 7,170 Unfavorable Volume Variance 2,400 Favorable 4. Compute the variable overhead spending and efficiency variances. Spending Variance $ 150 Unfavorable Efficiency Variance $ 4,335 Unfavorable a. Materials 510,000 0 28,560 0 Direct Materials Price Variance Accounts Payable 0 538,560 510,000 0 b. Work in Process Direct Materials Usage Variance Materials 0 21,375 0 488,625 c. Work in Process 143,100 0 Direct Labor Efficiency Variance 45,900 0 Direct Labor Rate Variance 0 525 Wages Payable 0 188,475 d. Work in Process 45,315 0 0 13,515 Variable Overhead Control Fixed Overhead Control 0 31,800 e. Variable Overhead Control 18,000 0 Fixed Overhead Control 36,570 0 Various Accounts 0 54,570 f. Prepare journal entries for the closing out of variances to Cost of Goods Sold. Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. First, close direct materials and direct labor variances: Cost of Goods Sold 52,560 0 Direct Materials Usage Variance 21,375 0 Direct Labor Rate Variance 525 0 Direct Labor Efficiency Variance 0 Direct Materials Price Variance 0 Second, recognize the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. Variable Overhead Control 0 Fixed Overhead Spending Variance 0 Fixed Overhead Control 0 Fixed Overhead Volume Variance 0 Variable Overhead Efficiency Variance 0 Variable Overhead Spending Variance 0 Third, close the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. Fixed Overhead Volume Variance 9,255 0 Variable Overhead Efficiency Variance 2,400 X 0 Variable Overhead Spending Variance 0 150 Cost of Goods Sold 0 Fixed Overhead Spending Variance 0 7,170 X
