Standard Costing Hand-in Problems 1. Sweetwater Company manufactures one product, named Mountain Mist. The company prepares its master budget on the basis of standard costs. The following data are for March: Required: a. Calculate the DM and DL variances for the month. b. Prepare the journal entries for DM and DL to isolate the variances in the accounts. Also prepare the month-end entry to close the variances to COGS. c. Calculate the VOH and FOH variances using a 4-way overhead analysis. d. Using the variances you calculated in Part C, perform 3-way, 2-way and 1-way analyses of overhead. e. Show what the MOH account would look like at the end of the month. Close the over/underapplied MOH account to COGS assuming that Sweetwater does not isolate the overhead variances in the accounts. 2. You are given the following information for XYZ Company: - Actual quantity of direct labor =5,000 hours - Actual direct labor rate =$10 per hour - Total direct labor variance =$8,600 Unfavorable - Direct labor rate variance =$4,000 Unfavorable - Standard hours allowed per unit produced =2 hours Required: Find the following unknowns. a. Direct labor efficiency variance b. Standard rate per direct labor hour c. Actual quantity produced