Question
Slick Corporation is a small producer of synthetic motor During Maythe company produced 5, 00 cases of lubricantEach case contains 12 quarts of synthetic To
Slick Corporation is a small producer of synthetic motor During Maythe company produced 5, 00 cases of lubricantEach case contains 12 quarts of synthetic To achieve this level of production, purchased and used 16,500 gallons of direct materials at a cost of $20,830also incurred average direct labor costs of $13 per hour for the hours worked in May by its production personnel Manufacturing overhead for the month totaled $9129, of which $2,200 was considered Slick's standard cost information for each case of synthetic motor is as follows.
a. Compute the materials price and quantity variances b. Compute the labor rate and efficiency variances. Compute the manufacturing overhead spending and volume variances d. Prepare the journal entries to: 1. Charge materials (at standard) to Work in Process. 2. Charge direct labor (at standard) to Work in Process 3. Charge manufacturing overhead (at standard) to Work in Process. 4. Transfer the cost of the 5,000 cases of synthetic motor produced in May to Finished Goods 5. Close any over- or underapplied overhead to cost of goods sold.
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