Root manufachares coffee mugs that sels to other companies for custornizing with their cwan. Actual cost and production information for July 2024 follows: logos. Root prepares flewble budgets and uses a standard cost system to controi manulacturing (Cick the icon to vinw actual cost and production information.) costs. The standard unit cost of a coffee mug is based on stasic budget volume of 60,100 coffee mugs per month: Read the reauicemects. III (Cick the iogn to view the cost data) Requirement 1. Compule the cost and efficiency variances for diect materials and direct laboo, Begin with the cost variances. Select the required formudas, compule the cost variances for drect materials and direct labot, and isentify whether each variance is favorable (F) or unfavorable (U). Select the required formulas, compute the Effolency variances for drect materals and direct labor, and idently whether each variance is taworable (F) or unfavorable (U). (ACboreviations issed AC a Requirement 2. Joumalice the purchase and usage of deoct maleries and the assigment of drect labor, induding the rebted variances. (Recond detias first, inen cedits. Select the expianason on the lass ine of tive joumal entry titile I Root manutactures coffee mugs that it solls to other companies for customizing with their own Actual cost and production information for July 2024 follows: Now, journalze the usage of direct maierials, induding the related variance. (Prepare a single compound journal entry) Joumalize the incurance and assignment of deect labor costs, including the rolated variances. (Propore a shgle compound journal entry) Requirement 3. For mandacturing overhead, compute the varhable ovechead cost and efficiency variances and the fived overhead coat and volume varianoes. Root manufactures coflee mugs that if sells to other companies for custombing with their own Actual cost and production information for July 2024 follows: Now compute the fued overhead cost and volume variances. Select the reguleed fomulas, compute the fxed overhead cost and volume variances, and idenoly whecher each variance is favorable (F) or untavorable (U) (Abbrevabions used. AC = actuai cost AQ - actual quartify. FOH = fiend overheod, SC = standwd cost, 50 = standard quant y ) Requirement 4. Joumalice the actual manutacturing overhead and the alocaled manutachirng ovarhesd doumalize the movement of all production costs from Work-in-Process inventory. Begn by fouenaiding the entry to show the actual manufacturing overtesd cots incurred Joutnalize the appled manufactures overhesd. Poot manufactures collee mugs that in sels to other cortparies for customiaing with their own Actual cost and production information for July 2024 follows: Jeumalue the movement of at production from Work th-Process inventory Jeurnalce the odvating of the Marulacturing Ovechesd account (Prepire a single compound joumal ontry.) Requirement 5. Root intentionaly tired more isghly skited workers during July. How did this decison affoct the cost variances? Ovorad, was the docision wise? Herng mere-skbed, Figher-paid tabor led to pertormed efficienty. The overal net effect is this managements decision was Data table More info a. There were no beghriry or enang inveniory halances. Ay expandiures were on ascout. b. Actual producton and anles were 62.800 cotlee muga. 5. Acteat diect metarials usage was 10.060lbs, at an ackial cost of 30.17 per b. d. Actual direct labor usege was 201.000 minutes at a total cost of 126.130. a. Acteal overhesd cost was 39.045 variatile and 531,755 foed. 1. Soting and actriniutrative costs wore $126.000
