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

Direct materials: 6 feet at $1.00 per foot $ 6.00 Direct labor: 1 hour at $4.50 per hour 4.50 Variable manufacturing overhead: 1 hour at $3.00 per hour 3.00 Total standard variable cost per unit $ 13.50

During October, 6,000 units were produced. Selected data relating to the months production follow:

Material purchased: 60,000 feet at $0.95 per foot $ 57,000 Material used in production: 38,000 feet Direct labor: ? hours at $ ? per hour $ 27,950 Variable manufacturing overhead cost incurred $ 20,475 Variable manufacturing overhead efficiency variance $ 1,500 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 quantity and price 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).)

Material quantity variance $ Material price variance $

b. Prepare journal entries to record activity for October.

General Journal Debit Credit

2. For direct labor:

a. Compute the efficiency and rate variances for October. (Do not round your intermediate calculations. 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).)

Labor efficiency variance $ Labor rate variance $

b. Prepare a journal entry to record labor activity for October.

General Journal Debit Credit

3. For variable manufacturing overhead:

a. Compute the spending variance for October. (Do not round your intermediate calculations. 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).)

Variable overhead spending variance $