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

Record the entry to transfer the cost of sales at standard cost.

Date			Accounts and Explanation	Debit	Credit