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Stenback manufactures coffee mugs that it sells to other companies for customizing with their own logos. Stenback prepares flexible budgets and uses a standard cost

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Stenback manufactures coffee mugs that it sells to other companies for customizing with their own logos. Stenback 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 Click the icon to view the cost data) Actual cost and prduction informat Click the icon to view actual Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor, Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance actual quantity, FOH - foed overhead: SC standard cost, SQ standard quantity) Formula Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavor fixed overhead: SC standard cost, SQ standard quantity) Formula Variance Direct materials officiency variance Direct labor efficiency variance Requirement 2. Joumalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, the Begin by joumalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry) Date Accounts and Explanation Debit Credit Jul Choose from any istente wwn logos. Stenback standard unit cost of a Actual cost and production information for July 2024 follows: (Click the icon to view actual cost and production information.) Read the requirements et materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ= or, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ actual quantity: FOH CO ect labor, including the related variances. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) ingle compound journal entry) Actual cost and production informatic (Click the icon to view actual cos Read the requirements Stenback manufactures collee mugs that it sells to other companies for customizing with their own logos. Stenback preparos flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on state budget volume of 59,900 coffee mugs per month: (Click the icon to view the cost data) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry) Date Accounts and Explanation Debit Jul Credit Journalize the insurance and assignment of direct labor costs, including the related variances (Prepare a single compound joumal entry) Accounts and Explanation Date Debit Credit Jul Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and iden interim calculations to four decimal places. XXXXX and your first answers to the nearest whole daar Abbreviations used. AC - actual cost AG actual quantity, Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and interim calculations to four decimal places, XXxxx, and your final answers to the nearest whole dollar. Abbreviations used: AC - actual cost; AQ - actual quan variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances Select the required formulas, compute the fixed overhead cost and volume variances, and identity AC - actual cost: AQ - actual quantity: FOH - foed overhead: SC standard cost SQ standard quantity) Formula Variance FOH cost variance FOH volume variance Requirement 4. Joumalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Overhead account. (Record debits first, then credits Select the explanation on the last line of the journal entry table) Begin by joumalizing the entry to show the actual manufacturing overhead couts incurred Date Accounts and explanation Debit Credit Jul Choose from any lot or enter any number in the input fields and then continue to the next question Ticiency variances and the fixed overhead cost and volume variances. es, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC - standard cost SQ = standard quantity; VOH = compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: standard quantity) muring overhead. Journalize the movement of all production costs from Work in Process Inventory, Journalize the adjusting of the Manufacturing of the journal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred. Date Accounts and Explanation Credit Debit Jul. Journalize the applied manufacturing overhead. Date Accounts and Explanation Debit Credit Jul Journalize the movement of all production from Work-in-Process Inventory Data Accounts and Explanation Debit Credit HOME Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Credit Jul Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry) Accounts and Explanation Debit Credit Date Jul Requirement 5. Stenback intentionally hired more highly skilled workers during July. How did this decision affect the con Requirement 5. Stenback intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise Hiring more-skitled, higher paid labor led to y direct labor cost variance. Given the The overall net effect is direct labor efficiency variance, it apper thus management's decision was Choose from any list or enter any number in the input fields and then continue to the next question ring July. How did this decision affect the cost variances? Overall, was the decision wise? ost variance. Given the direct labor efficiency variance, appear that these more skilled workers performed efficiently Continue to the next question i Data Table $ 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 @ $0.06 per minute) Fixed (3 minutes @ $0.14 per minute) $ 0.18 0.42 0.60 Total Cost per Coffee Mug $ 1.01 Print Done i More Info X a. There were no beginning or ending inventory balances. All expenditures were on 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. d. Actual direct labor usage was 199,000 minutes at a total cost of $29,850. e. Actual overhead cost was $9,950 variable and $30,950 fixed. f. Selling and administrative costs were $130,000. Print Done i Requirements X 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Stenback intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done

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