The Madison Corporation manufactures lamps. It has set up the following standards per finished unit for Assume that there was no beginning inventory of either direct materials or finished units. During the direct materials and direct manufacturing labor: month, materials purchased amounted to 97,300lb., at a total cost of $501,095, Input price (Click the icon to view the standards.) The number of finished units budgeted for January 2020 was 9,730;9,650 units were actually produced. variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. (Click the icon to view actual data.) Read the Requirement 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Requirements 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2020 price and efficiency variances of Madison Corporation. 4. Why might Madison calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? Actual Data Standards Actual results in January 2020 were as follows: Direct materials: 95,500lb. used Direct manufacturing labor: 4,700 hours Direct materials: 10lb. at $5.00 per lb. Direct manufacturing labor: 0.5 hour at $30 per hour The Madison Corporation manufactures lamps. It has set up the following standards per finished unit for Assume that there was no beginning inventory of either direct materials or finished units. During the direct materials and direct manufacturing labor: month, materials purchased amounted to 97,300lb., at a total cost of $501,095, Input price (Click the icon to view the standards.) The number of finished units budgeted for January 2020 was 9,730;9,650 units were actually produced. variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. (Click the icon to view actual data.) Read the Requirement 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Requirements 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2020 price and efficiency variances of Madison Corporation. 4. Why might Madison calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? Actual Data Standards Actual results in January 2020 were as follows: Direct materials: 95,500lb. used Direct manufacturing labor: 4,700 hours Direct materials: 10lb. at $5.00 per lb. Direct manufacturing labor: 0.5 hour at $30 per hour
