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SUPERIOR PRODUCED 1000 UNITS OF FINISH PRODUCTS IN 2018: Direct materials cost variance $115 U Direct materials efficiency variance 840 F Direct labor cost variance

SUPERIOR PRODUCED 1000 UNITS OF FINISH PRODUCTS IN 2018:

Direct materials cost variance

$115

U

Direct materials efficiency variance

840

F

Direct labor cost variance

700

F

Direct labor efficiency variance

6,450

F

Variable overhead cost variance

1,000

U

Variable overhead efficiency variance

1,000

F

Fixed overhead cost variance

700

U

Fixed overhead volume variance

Standards:

3 yards of cloth per unit at $1.20 per yard

2 direct labor hours per unit at $10.75 per hour

Overhead allocated at $5.00 per direct labor hour

Actual:

2,300 yards of cloth were purchased at $1.25 per yard

Employees worked 1,400 hours and were paid $10.25 per hour

Actual variable overhead was $1,600

Actual fixed overhead was $6,500

PrintDone

Record the overhead allocated to Work-in-Process Inventory.

Date

Accounts and Explanation

Debit

Credit

Work-in-Process Inventory

Manufacturing Overhead

Manufacturing overhead costs allocated.

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