Bria manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows: customizing with their own logos. Bria prepares flexible budgets and (i) (Click the icon to view actual cost and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of production information.) 60,000 coffee mugs per month: (Click the icon to view the cost data.) Data table Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Bria intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Requlrement 1. Compute the cost and efficiency variances for direct materiais and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: A C = actual cost; A O = actual quantity; FO H = fixed overhead; SC = standard cost SQ = standard quantity. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is tavorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = Standard cost; S SQ = standard quantity.) Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Joumalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Requirement 3. For manufacturina overhead, compute the variable overhead cost and efficiencv variances and the fixed overhead cost and Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficlency variances and the fixed overhead cost volume variances. Begin with the variable overhead cost and efficlency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable ( F ) or unfavorable (U). (Abbreviations used: A C = actual cost; A Q = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Requirement 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Joumalize the movement of al production costs from Work-in-Process Inventory. Joumalize the adjusting of the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred Journalize the applied manufacturing overhead. Journalize the applied manufacturing overhead. Journalize the movement of all production from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal er Hining more-skilled, higher-paid labor led to direct labor cost variance. Given the direct labor efliciency variance, it appear that these more-skilled workers performed efficiently. The overall net effect is thus management's decision was Bria manufactures coffee mugs that it sells to other companies for Actual cost and production information for July 2024 follows: customizing with their own logos. Bria prepares flexible budgets and (i) (Click the icon to view actual cost and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of production information.) 60,000 coffee mugs per month: (Click the icon to view the cost data.) Data table Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Bria intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Requlrement 1. Compute the cost and efficiency variances for direct materiais and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: A C = actual cost; A O = actual quantity; FO H = fixed overhead; SC = standard cost SQ = standard quantity. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is tavorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = Standard cost; S SQ = standard quantity.) Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Joumalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Requirement 3. For manufacturina overhead, compute the variable overhead cost and efficiencv variances and the fixed overhead cost and Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficlency variances and the fixed overhead cost volume variances. Begin with the variable overhead cost and efficlency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable ( F ) or unfavorable (U). (Abbreviations used: A C = actual cost; A Q = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Requirement 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Joumalize the movement of al production costs from Work-in-Process Inventory. Joumalize the adjusting of the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred Journalize the applied manufacturing overhead. Journalize the applied manufacturing overhead. Journalize the movement of all production from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal er Hining more-skilled, higher-paid labor led to direct labor cost variance. Given the direct labor efliciency variance, it appear that these more-skilled workers performed efficiently. The overall net effect is thus management's decision was
