Rouse manufactures coffee mugs that it sells to other companies for customizing with their own logos, 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 60,000 coffee mugs per month: (Click the icon to view the cost data.) Actual cost and production information for July 2016 follows: (Click the icon to view actual cost and production information.) Rouse calculated the following variances and recorded the following entries for July 2016. (Click the icon to view variances.) (Click the icon to view journal entries.) Rouse's standard and actual sales price per mug is $4. Prepare the standard costing income statement for July 2016. (Use a minus sign or parentheses to enter any contra expenses and/or an operating loss. Enter all other amounts as positive numbers.) i Data Table 20 A 0.05 0.36 Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor (3 minutes @ $ 0.12 per minute) Manufacturing Overhead: Variable (3 minutes @ $ 0.04 per minute) $ Fixed (3 minutes @ $ 0.14 per minute) Total Cost per Coffee Mug 20: 0.12 0.42 0.54 S 0.95 Choose fro Print Done All parts showing CIGAR VIOLA NIwer 28 W Rouse Standard Cost Income Statement For the Month Ended July 31, 2016 Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Mac Gross Profit Operating Income (Loss) Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Clear MacBoo - i Reference Formula Variance = 880 F Direct materials cost variance Direct labor cost variance (AC-SC) x AQ (AC - SC) XAQ Formula = $ = $ = 4,000 U Variance = $ 385 F Direct materials efficiency variance Direct labor efficiency variance (AQ - SQ) x SC (AQ - SQ) SC Formula = $ 1,428 U Variance = $ 3,000 F VOH cost variance VOH efficiency variance Actual VOH - (SC XAQ) (AQ - SQ) x SC Formula = $ 476 U Variance FOH cost variance = $ Actual FOH - Budgeted FOH Bugeted FOH - Allocated FOH 10,300U 1,134 F FOH volume variance = $ Print Done Gross a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,700 coffee mugs. Actual direct materials usage was 11,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 200,000 minutes at a total cost of $28,000 e. Actual overhead cost was $5,000 variable and $35,500 fixed. f. Selling and administrative costs were $95.000 C. Operat Choose All part Print Done Ele Reference Date Debit Credit Jul 2,750 880 rus 1,870 as Jul. 3,135 385 2,750 Accounts and Explanation 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. Manufacturing Overhead Various Accounts Manufacturing overhead costs incurred. Work-in-Process Inventory Manufacturinn uorhead Jul 22,572 4,000 1,428 28,000 Jul. 40,500 40,500 Jul. 33,858 23 RER Print Done Clear AI ACR AS WE bres fle Reference - X fee m 4,000 1,428 28,000 16. (Us Jul. as posi 40,500 40,500 Jul. 33,858 33,858 Direct Labor Cost Variance Direct Labor Efficiency Variance Wages Payable 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 Fixed Overhead Cost Variance Variable Overtlead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead To adjust Manufacturing Overhead. Jul. 59,565 59,565 Jul. 476 10,300 3,000 1,134 6,642 Print Done