Texible Budget, Standard Cost Variances, T-Accounts ingles Company manufactures extemal hard drives. At the beginning of the period, the following plans for production and costs were revealed: During the year, 24,800 units were produced and sold. The following actual costs were incurred: There were no beginning or ending inventories of direct materials. The direct materials price variance was $9,472 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours. Required: Instructions for parts 1 and 2 : If a variance is zero, enter " 0 and select "Not applicable" from the drop down box, 1. Prepare a performance report comparing expected costs to actual costs. During the year, 24,800 units were produced and sold. The following actual costs were incurred: There were no beginning or ending inventories of direct materials, The direct materials price variance was $9,472 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box: 1. Prepare a performance report comparing expected costs to actual costs. a. Direct materials usage variance i x b. Direct labor rate variance 3x c. Direct isbor usage variance i x d. Fixed oveithead spending and volume variances e. Variable overhead spending and efficiency variances 3. Use T-accounts to show the flow decosts through the system. In showing the fiow, you do not need to show detalied overhead variances. Show only the over- and underapplied vartances tor fived and variable overhesd. Recond the following transactions in the T-accounts: If an amount is yero, enter 00. (a) purchase of materials. (b) iswance of materials into production, (e) inarmence ot difed inhas cost 3. Use T-accounts to show the flow of costs through the system. In showing the flow, you do not need to show detailed overhead variances, 5 how only the over-and underapplied variances for fixed and variable overheod. Record the following transactions in the T-accounts: if an amount is zero, enter "0". (a) purchase of materials, (b) issuance of materials into production, (c) incurrence of cirect labor cost, (d) application of variable overhead cost to production, (e) application of fixed overhead cost to production, (t) transfer of finisthed goods to finished goods inventory, (9) sale of coods, (h) closure of Direct Materials Price Variance account, (i) closure of Direct Materials Usage Variance acceunt, (1) closure of Direct Labor Efficiency Variance account, (k) clasure of Variable Overhead Control account, and (1) closure of Fixed Overhead Control account. Enter these transactions in the T-accounts in the same order that they are presented here. Enter these transactions in the T-accounts in the same order that they are presented here. Direct Materials Price Variance Accounts Payable Direct Labor Rate Variance Direct Labor Efficiency Variance Variable Overhead Control Direct Labor Rate Variance Variable Overhead Control Fixed Overhead Control Check My Work
