The normal capacity of Central Manufacturing Company is 45,000 direct labor hours and 20,000 units per month. A finished unit requires 6 pounds of materials at an estimated cost of $2 per pound. The estimated cost of labor is $10 per hour. The plant estimates that overhead for a month will be $40,000. During the month of March, the plant totaled 41,800 direct labor hours at an average rate of $9.50 an hour. The plant produced 18,000 units, using 105,000 pounds of materials at a cost of $2.04 per pound. Using this spreadsheet, prepare (a) a standard cost summary showing standard unit cost, and (b) journal entries to charge materials and labor to work-in-process.

Standard Cost Summary

Materials (6 lbs. @ $2.00 per lb.):

Labor:

Factory overhead:

Standard cost per unit:

Work in Process: Materials

Materials Price Variance (U)

Materials Quantity Variance (F)

Materials

Work in Process Labor:

Labor Efficiency Variance (F)

Labor Rate Variance (F)

Payroll