Please refer to the Excel template for the variance analysis spreadsheet. You are to complete the variances listed for direct materials, direct labor, variable overhead, and fixed overhead. All information necessary is listed in the problem areas, above the variance calculation area. If any errors are discovered, consider the Excel data correct. Direct Labor is based on DLHs, Variable Overhead is based on machine hours (MH). All per unit rates are taken to 3 decimal places. Actual / Standard Direct Materials Direct Labor Variable MO Fixed MO Production Units Actual 52,350 52,350 52,350 52,350 Standard DM units per finished unit Standard 4.250 Standard DM unit price Standard $7.425 0.265 Standard DLH's per finished unit Standard $14.990 Standard DLH rate Standard 3.500 Standard VOH MH's per finished unit Standard Standard $26.085 Standard VOH POR rate per MH 8.250 Standard FOH MH's per finished unit Standard $6.750 Standard FOH POR rate per MH Standard Actual DM units purchased & used Actual 220,790 Actual DM unit price Actual $7.500 Actual DLHS 14,080 Actual $14.910 Actual DLH rate Actual 181,560 Actual VOH MHS Actual Actual VOH POR per MH $26.200 Actual $2,975,900 Actual FOH cost Actual Budget FOH cost Actual $3,108,667 Create all necessary journal entries to record all standard cost variances in Problem 3 above. Show the journal entries for manufacturing overhead using a 4 variance, 3 variance and 2 variance approaches. Delete any Accounts or Amounts automatically displayed in the template that is not needed. For example, the Three Variance Approach shows Spending Variance as both a debit and credit account entry; delete the account not needed. The account values will automatically fill for most items from the Problem 3 results. Make sure you complete the journal entries for the three and two- tiered approach. 2 Production units: Summary - Variances 3 MPV $0 0 4 Standards: Std. Quantity Std. Price MOV $0 0 5 Material Total MV $0 0 6 7 Actuals: Act. Quantity Act. Price LRV $0 0 8 Material LEV $0 0 9 Total LV $0 0 10 11 VOH SPEND $0 0 Material price variance Variance Quantity 12 AP SP Total Variance F/U VOH EV $0 0 13 Total VOH $0 0 14 15 Material quantity variance FOH SPEND $0 0 16 AQ SQ Variance Price Total Variance F/U FOH VOLUME $0 0 17 Total FOH $0 0 18 19 Total material variance 20 Total Actual Total Standard Total Variance F/U 21 24 25 Debit Account Credit Account Debit Amount Credit Amount 26 R/M Inventory 27 28 Accounts Payable 29 30 WIP 31 32 R/M Inventory 33 34 35 36 Production units: 37 38 Standards: Std. DL Hours Std. Rate 39 Labor 40 41 Actuals: Act. DL Hours Act. Rate 42 Labor 43 44 45 Labor rate variance 46 AR SR Variance Quantity Total Variance F/U 47 48 49 Labor efficiency variance 50 AH SH Variance Rate Total Variance F/U 51 52 53 Total labor variance 54 Total Actual Total Standard Total Variance F/U 55 59 Debit Account Credit Account Debit Amount Credit Amount 60 WIP 61 62 63 Payroll Payable 64 65 Total JE 66 67 68 69 70 Production units: 71 72 Standards: Std. MH Hours Std. Rate 73 VOH 74 75 Actuals: Act. MH Hours Act. Rate 76 VOH 77 78 79 VOH spending variance 80 AR SR Variance Quantity Total Variance F/U 81 82 83 VOH efficiency variance 84 AH SH Variance Rate Total Variance F/U 85 86 87 Total VOH variance 88 Total Actual Total Standard Total Variance F/U 89 90 91 92 93 Debit Account Credit Account Debit Amount Credit Amount 94 WIP 95 96 97 VOH Control 98 99 Total JE 101 102 103 104 105 Standards: Std. MH Hours Std. Rate 106 FOH 107 108 Actuals: Actual FOH Budget FOH 109 FOH 110 111 112 FOH spending variance 113 Actual FOH Budgeted FOH Total Variance F/U 114 115 116 FOH volume variance 117 Budgeted FOH Applied FOH Total Variance F/U 118 119 120 Total FOH variance 121 Total Actual Total Standard Total Variance F/U 122 123 124 125 126 Debit Account Credit Account Debit Amount Credit Amount 127 WIP 128 129 130 FOH Control 131 132 Total J/E 133 1 Journal Entries 2 Account - Debit Account - Credit Debit Amount Credit Amount 3 R/M Inventory 4 5 Accounts Payable 6 7 WIP 8 9 R/M Inventory 10 11 WIP 12 13 14 Payroll Payable 15 16 Four Variance Approach 17 WIP 18 19 20 VOH Control 21 22 WIP 23 24 25 FOH Control 26 27 Three Variance Approach 28 WIP 29 30 31 32 MOH 33 34 Two Variance Approach 35 WIP 36 37 38 MOH 39 40 Please refer to the Excel template for the variance analysis spreadsheet. You are to complete the variances listed for direct materials, direct labor, variable overhead, and fixed overhead. All information necessary is listed in the problem areas, above the variance calculation area. If any errors are discovered, consider the Excel data correct. Direct Labor is based on DLHs, Variable Overhead is based on machine hours (MH). All per unit rates are taken to 3 decimal places. Actual / Standard Direct Materials Direct Labor Variable MO Fixed MO Production Units Actual 52,350 52,350 52,350 52,350 Standard DM units per finished unit Standard 4.250 Standard DM unit price Standard $7.425 0.265 Standard DLH's per finished unit Standard $14.990 Standard DLH rate Standard 3.500 Standard VOH MH's per finished unit Standard Standard $26.085 Standard VOH POR rate per MH 8.250 Standard FOH MH's per finished unit Standard $6.750 Standard FOH POR rate per MH Standard Actual DM units purchased & used Actual 220,790 Actual DM unit price Actual $7.500 Actual DLHS 14,080 Actual $14.910 Actual DLH rate Actual 181,560 Actual VOH MHS Actual Actual VOH POR per MH $26.200 Actual $2,975,900 Actual FOH cost Actual Budget FOH cost Actual $3,108,667 Create all necessary journal entries to record all standard cost variances in Problem 3 above. Show the journal entries for manufacturing overhead using a 4 variance, 3 variance and 2 variance approaches. Delete any Accounts or Amounts automatically displayed in the template that is not needed. For example, the Three Variance Approach shows Spending Variance as both a debit and credit account entry; delete the account not needed. The account values will automatically fill for most items from the Problem 3 results. Make sure you complete the journal entries for the three and two- tiered approach. 2 Production units: Summary - Variances 3 MPV $0 0 4 Standards: Std. Quantity Std. Price MOV $0 0 5 Material Total MV $0 0 6 7 Actuals: Act. Quantity Act. Price LRV $0 0 8 Material LEV $0 0 9 Total LV $0 0 10 11 VOH SPEND $0 0 Material price variance Variance Quantity 12 AP SP Total Variance F/U VOH EV $0 0 13 Total VOH $0 0 14 15 Material quantity variance FOH SPEND $0 0 16 AQ SQ Variance Price Total Variance F/U FOH VOLUME $0 0 17 Total FOH $0 0 18 19 Total material variance 20 Total Actual Total Standard Total Variance F/U 21 24 25 Debit Account Credit Account Debit Amount Credit Amount 26 R/M Inventory 27 28 Accounts Payable 29 30 WIP 31 32 R/M Inventory 33 34 35 36 Production units: 37 38 Standards: Std. DL Hours Std. Rate 39 Labor 40 41 Actuals: Act. DL Hours Act. Rate 42 Labor 43 44 45 Labor rate variance 46 AR SR Variance Quantity Total Variance F/U 47 48 49 Labor efficiency variance 50 AH SH Variance Rate Total Variance F/U 51 52 53 Total labor variance 54 Total Actual Total Standard Total Variance F/U 55 59 Debit Account Credit Account Debit Amount Credit Amount 60 WIP 61 62 63 Payroll Payable 64 65 Total JE 66 67 68 69 70 Production units: 71 72 Standards: Std. MH Hours Std. Rate 73 VOH 74 75 Actuals: Act. MH Hours Act. Rate 76 VOH 77 78 79 VOH spending variance 80 AR SR Variance Quantity Total Variance F/U 81 82 83 VOH efficiency variance 84 AH SH Variance Rate Total Variance F/U 85 86 87 Total VOH variance 88 Total Actual Total Standard Total Variance F/U 89 90 91 92 93 Debit Account Credit Account Debit Amount Credit Amount 94 WIP 95 96 97 VOH Control 98 99 Total JE 101 102 103 104 105 Standards: Std. MH Hours Std. Rate 106 FOH 107 108 Actuals: Actual FOH Budget FOH 109 FOH 110 111 112 FOH spending variance 113 Actual FOH Budgeted FOH Total Variance F/U 114 115 116 FOH volume variance 117 Budgeted FOH Applied FOH Total Variance F/U 118 119 120 Total FOH variance 121 Total Actual Total Standard Total Variance F/U 122 123 124 125 126 Debit Account Credit Account Debit Amount Credit Amount 127 WIP 128 129 130 FOH Control 131 132 Total J/E 133 1 Journal Entries 2 Account - Debit Account - Credit Debit Amount Credit Amount 3 R/M Inventory 4 5 Accounts Payable 6 7 WIP 8 9 R/M Inventory 10 11 WIP 12 13 14 Payroll Payable 15 16 Four Variance Approach 17 WIP 18 19 20 VOH Control 21 22 WIP 23 24 25 FOH Control 26 27 Three Variance Approach 28 WIP 29 30 31 32 MOH 33 34 Two Variance Approach 35 WIP 36 37 38 MOH 39 40