The McDermott Furniture Company has established standard costs for the cabinet department, in which one size of a single four-drawer style of dresser is produced. The standard costs of producing one of these drawers are shown below:

McDermott Furniture Company

Standard Cost Card Dresser, Style AAA

Mfg Cst Component Std Input per Std Price per Std Cost per

Unit of FG Unit of Input Unit of F.G.

Direct Materials 50 Bd Ft/Unit F.G. $5/Bd. Ft. $250/Unit

Direct Labor 3 DL HRS/ Unit FG $24/DL HR 72/Unit

Var Mfg O/H 3 DL HRS/Unit FG $10/DL HR 30/Unit

Fix Mfg O/H 3 DL HRS/Unit FG $20/DL HR 60/Unit

Std Mfg Cost/Unit F.G. $412/Unit

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The actual costs of operations to produce 400 of these dressers during January are as follows (there were no initial inventories):

Direct Materials Puchased: 25,000 board feet @ $5.60/Bd Ft $140,000

Direct Materials Used: 19,000 board feet

Direct Labor: 1,100 DL HRS @ $22/DL HR $ 24,200

Var O/H Costs: $ 12,760

Fix O/H Costs: $ 29,800

The flexible budget for this department at the monthly volume level used to set the budgeted fixed-overhead rate called for 1,400 direct labor hours of operation. At this level, the variable overhead was budgeted at $14,000, and the fixed overhead at $28,000.

Case Requirements:

Calculate all eight manufacturing variances for the month of January using the Columnar Presentation Approach appropriate for each manufacturing variance.

Calculate all eight manufacturing variances for the month of January using the Formula Presentation Approach appropriate for each manufacturing variance.

Record all of the summary Journal Entries required for the month of January under Standard Absorption Cost.

Record the necessary Journal Entry to convert from Standard Absorption Cost to Actual Absorption Cost.