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Question # 1 The following information pertains to the Lebowski Corporation: VMOH & FMOH are both allocated using direct labor hours. a ) Calculate the

Question #1
The following information pertains to the Lebowski Corporation:
VMOH & FMOH are both allocated using direct labor hours.
a) Calculate the following variances:
Direct materials price variance
Direct materials efficiency variance
Direct manufacturing labor rate variance
Direct manufacturing labor efficiency variance
VMOH spending variance
VMOH efficiency variance
FMOH spending variance
FMOH production-volume variance
b) Prepare the following journal entries:
Purchase of direct materials
Usage of direct materials
Paying of wages for direct manufacturing labor
Incurrence of VMOH & FMOH
Application of VMOH&FMOH to production
Closing out VMOH and FMOH accounts
Closing out variances to COGS
c) Provide a specific explanation for each variance calculated in part A
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