the company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the companys product lines (per unit of product)

during this period, the company produced 9000 unirs of product. A comparison of standard and actual costs for the period on a total cost basis is also given above.

there was no inventory of materials on hand to start the period. During the period, 21,600 meteres of materials was purchased amd used in production. The denominator level of activity for the period was 11,140 hours.

1. prepare Journal Entries to record all activity relatinf to direct materials for the period

a) record the materials price variance J/E

b) record the materials quantity varaincd J/E

2. prepare a journal entrey to record the incurrence of direct labour cost for the period (hint debit work in process, credit Labour rate variance)

3. compute the fixed overhead budget variance and fixed overhead volume variance.

standind Actuat cost romot Dinect materials: Standard: 2.8 meteres at $3.90 per metre 57.80 Actua1: 2,4 metres at \$3.,65 per metre 8.8 .76 Dinect labour: Standard: 1.5 hours at $2.50 per hour Actual: 1.2 hours at $2.85 pen hour Variable manufacturing overhead: Standard: 1.5 hours at \$1.10 per hour Actual: 1.2 hours at $1.46 per hour fixed manufacturing overhead: Standard: 1.5 hours at $3.30 per hour Actual: 1.2 hours at 53.40 per hour Fotal cost per unit 4.95$18.15 Actual costs: 9,006 units at 517.94 Standard costs: 9,006 units at $18,15 Difference in cost-favourable 5161,460163,35042,890