Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains 12 quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,316. It also incurred average direct labor costs of $13 per hour for the 4,169 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,572, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows. Direct materials standard price $ 1.30 per gallon Standard quantity allowed per case 3.25 gallons Direct labor standard rate $ 16 per hour Standard hours allowed per case 0.75 direct labor hours Fixed overhead budgeted $2,600 per month Normal level of production 5,200 cases per month Variable overhead application rate $ 1.50 per case Fixed overhead application rate ($2,600 + 5,200 cases) 0.50 per case Total overhead application rate $ 2.00 per case | Required: a. Compute the materials price and quantity variances. b. Compute the labor rate and efficiency variances. c. Compute the manufacturing overhead spending and volume variances. d. Prepare thejournal 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 oil produced in May to Finished Goods. 5. Close any over or underapplied overhead to cost of goods sold. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Materials price variance Materials quantity variance Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance) Labor rate variance Labor efficiency variance Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the manufacturing overhead spending and volume variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance)). Overhead spending variance Overhead volume variance Required A Required B Required C Required 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 oil produced in May to Finished Goods. 5. Close any over- or underapplied overhead to cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 2 3 4 5 Record the cost of direct materials charged to production. Note: Enter debits before credits. Transaction General Journal Debit Credit 1