Rouse manufactures coffee mugs that it sells to other companies for customizing Rouse calculated the following variances and recorded the following entries for with their own logos July 2018 (Click the icon to view the cost data.) Actual cost and production information for July 2018 follows: 1 Data Table - X (Click the icon to view actual cost and production information.) Rouse's standard and actual sales price per mug is $5. Rouse prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee mugs per month Rouse Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Standard Cost Income Statement 3 minutes @ $ 0.14 per minute) * More Info minutes @ $ 0.04 per minute) $ 0.12 minutes @ $ 0.13 per minute) a. There were no beginning or ending inventory balances All expenditures were on $ 0.99 account b. Actual production and sales were 62,600 coffee mugs c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb Print Done d. Actual direct labor usage was 199,000 minutes at a total cost of $33830 e. Actual overhead cost was $3.980 variable and $36,420 forced f. Selling and administrative costs were $130,000 Print Done Rouse manufactures coffee mugs that it sells to other companies for customizing with their own logos Rouse calculated the following variances and recorded the following entries for July 2018 (Click the icon to view variances.) (Click the icon to view journal entries.) 0 Reference - X Prepare the standard posting Income statement for July 2018. (Use a minus sign or parentheses to enter any contra expenses and/or an operating loss. Enter all other amounts as positive numbers.) Direct materials cost variance Direct labor cost variance Variance = $ 800 F = $ 5,970 U Variance - S 630 F - $ 1,568 U Direct materials efficiency variance Direct labor efficiency variance Variance = $ 3.980 F VOH cost variance VOH efficiency variance = $ 448 U Variance FOH cost variance FOH volume variance $ 5 13059 U 1,053 F Print Done Jinue to the next question d the followin Coffee 0 Reference Debit Credit view the action in view ad ad actual 2,500 lly 2018. (Use In operating lo 800 1,700 630 Date Accounts and Explanation Jul. Raw Materials Inventory Direct Materials Cost Variance Accounts Payable Purchased direct materials. Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory Used direct materials Work-in-Process Inventory Direct Labor Cost Variance Direct Labor Efficiency Variance Wages Payable Direct labor costs incurred Jul. Manufacturing Overhead Various Accounts 2,500 Jul 26,292 5,970 1,568 33,830 40,400 40,400 any list or ente Print Done hawa w Shah 0 Reference the following royar logos. icon to view the nd production i icon to view all vdard and actual Jul. 40,400 lly 2018. (Use and In operating loss 40,400 Jul. 31,926 31,926 Jul. Direct labor costs incurred. Manufacturing Overhead Various Accounts Manufacturing overhead costs incurred. Work-in-Process Inventory Manufacturing Overhead Manufacturing overhead costs allocated. Finished Goods Inventory Work in Process Inventory Completed goods transferred. Variable Overhead Efficiency Variance Foed Overhead Cost Variance Variable Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead To adjust Manufacturing Overhead 61,348 61,348 Jul 448 13,059 3,980 1,053 8.474 ose from any list or entd Print Done Rouse manufactures coffee mugs that it sells to other companies for customizing with their own logos. (Click the icon to view the cost data.) Actual cost and production information for July 2018 follows: A (Click the icon to view actual cost and production information.) Rouse's standard and actual sales price per mug is $5. Rouse Standard Cost Income Statement For the Month Ended July 31, 2018 Gross Profit Operating Income (Loss)
