Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows:

Direct materials: 5 feet at $1.00 per foot	$	5.00
Direct labor: 1 hour at $5.30 per hour		5.30
Variable manufacturing overhead: 1 hour at $2.80 per hour		2.80
Total standard variable cost per unit	$	13.10

During October, 5,800 units were produced. Selected data relating to the months production follow:

Material purchased: 64,000 feet at $0.95 per foot	$	60,800
Material used in production: 38,200 feet
Direct labor: ? hours at $ ? per hour	$	26,460
Variable manufacturing overhead cost incurred	$	20,430
Variable manufacturing overhead efficiency variance	$	1,400	U

There was no beginning inventory of raw materials. The variable manufacturing overhead rate is based on direct labor-hours.

Required:

1.	For direct materials:

a.

Compute the price and quantity variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Material price variance	$	(Click to select)FNoneU
Material quantity variance	$	(Click to select)FNoneU

b.	Prepare journal entries to record activity for October. (Omit the "$" sign in your response.)

General Journal	Debit	Credit
(Click to select)Work in processLabor efficiency varianceRaw materialsAccounts payableMaterials quantity varianceWages PayableLabor rate varianceMaterials price variance
(Click to select)Labor efficiency varianceWages PayableRaw materialsAccounts payableLabor rate varianceMaterials price varianceMaterials quantity varianceWork in process
(Click to select)Labor rate varianceMaterials quantity varianceWages PayableAccounts payableRaw materialsWork in processMaterials price varianceLabor efficiency variance
(Click to select)Work in processRaw materialsWages PayableAccounts payableLabor efficiency varianceMaterials quantity varianceLabor rate varianceMaterials price variance
(Click to select)Materials quantity varianceRaw materialsWages PayableLabor rate varianceLabor efficiency varianceMaterials price varianceAccounts payableWork in process
(Click to select)Work in processMaterials quantity varianceLabor rate varianceRaw materialsMaterials price varianceLabor efficiency varianceAccounts payableWages Payable

2.	For direct labor:

a.

Compute the rate and efficiency variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Labor rate variance	$	(Click to select)FUNone
Labor efficiency variance	$	(Click to select)FUNone

b.	Prepare a journal entry to record labor activity for October. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

General Journal	Debit	Credit
(Click to select)Raw materialsWages payableLabor rate varianceMaterials quantity varianceLabor efficiency varianceMaterials price varianceAccounts payableWork in process
(Click to select)Accounts payableRaw materialsLabor rate varianceWork in processMaterials price varianceLabor efficiency varianceWages payableMaterials quantity variance
(Click to select)Labor rate varianceWages PayableAccounts payableLabor efficiency varianceMaterials quantity varianceRaw materialsWork in processMaterials price variance
(Click to select)Labor rate varianceLabor efficiency varianceMaterials quantity varianceRaw materialsMaterials price varianceWork in processAccounts payableWages Payable

3.	For variable manufacturing overhead:

a.

For variable manufacturing overhead. (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Variable overhead spending variance	$	(Click to select)FUNone