Trueform Products Inc., a U.S. company, produces a broad line of sports equipment and uses a standard costing system for control purposes. Last year, the company produced 10,400 varsity footballs. The standard costs associated with this football, along with the actual costs incurred last year, follow (per football: Standard Cost Actual Cost $62.90 $67.20 Direct materials Standard: 3.7e feet at $17.00 per foot Actual: 4.0 feet at $16.30 per foot Direct labour Standard: 0.98 hour at $19.50 per hour Actual: 0.80 hour at $20.00 per hour Variable manufacturing overheadt Standard: 0.90 hour at $14.50 per hour Actuals 0.80 hour at $14.75 per hour Total cost per football 17.55 16.00 13.05 $93.50 11.80 $95.00 The president was elated when he saw that actual costs exceeded standard costs by only $1.50 per football. He stated. "I was afraid that our unit cost might get out of hand when we gave out those raises last year in order to stimulate output. But it's obvious Our costs are well under control." There was no inventory of materials on hand to start the year. During the year, 41,600 feet of materials were purchased and used in production Required: 1. For direct materials: a. Compute the price and quantity variances for the year (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance), 1 There was no inventory of materials on hand to start the year During the year, 41,600 feet of materials were purchased and used in production Required: 1. For direct materials: a. Compute the price and quantity variances for the year, (Indicate the effect of each variance by selecting "F" for fovourable, "U" for unfavourable, and "None" for no effect (1.e., zero variance), Material price variance Material quantity variance b. Prepare journal entries to record all activity relating to direct materials for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list 1 b. Prepare journal entries to record all activity relating to direct materials for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list apped Journal entry worksheet 1 2 Record purchase of materials on account and related variance Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal 1 2. For direct labour: a. Compute the rate and efficiency variances, (Indicate the effect of variance by selecting "" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance), Labour rato variance Labour efficiency variance b. Prepare a journal entry to record the incurrence of direct labour cost for the year (If no entry is required for a transaction, selec Na Lola b. Prepare a journal entry to record the incurrence of direct labour cost for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record wage expenses related to production and variance Note Enter debits before credits Transaction General Journal Debit Credit 1 - Record entry Clear entry View general Journal 3. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Variable overhead spending variance Variable overhead efficiency variance Thirt Trueform Products Inc, a U.S. company produces a broad line of sports equipment and uses a standard costing system for control purposes. Last year, the company produced 10,400 varsity footballs. The standard costs associated with this football, along with the actual costs incurred last year, follow (per football): Standard Cost Actual Cost $62.90 $67.20 17.55 Direct materials Standard 3.0 feet at $17.00 per foot Actual: 4.00 feet at $16.80 per foot Direct labour Standard: e.99 hour at $19.50 per hour Actual: 0.0 hour at $20.00 per hour Variable manufacturing overhead: Standard: 0.90 hour at $14.50 per hour Actual: 0.80 hour at $14.75 per hour Total cost per football 16.00 13.05 $93.50 11.80 $95.00 The president was elated when he saw that tual costs exceeded standard costs by only $1.50 per football. He stated, "I was afraid that our unit cost might get out of hand when we gave out those raises last year in order to stimulate output. But it's obvious our costs are well under control." There was no inventory of materials on hand to start the year. During the year, 41,600 feet of materials were purchased and used in production Required: 1. For direct materials: omnite the price and quantity yariances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for The president was elated when he saw that actual costs exceeded standard costs by only $1.50 per football. He stated, "I was afraid that our unit cost might get out of hand when we gave out those raises last year in order to stimulate output. But it's obvious our costs are well under control." There was no inventory of materials on hand to start the year. During the year, 41,600 feet of materials were purchased and used in production Required: 1. For direct materials: a. Compute the price and quantity variances for the year. (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (i.e., zero variance). Material price variance Matena quantity variance b. Prepare journal entries to record all activity relating to direct materials for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record purchase of materials on account and related variance. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal "No journal entry required in the first account field.) erials for the year. (If no entry is require View transaction list d Journal entry worksheet 1 CE Record issue of materials to production and related variance. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general Journal 2. For direct labour: a. Compute the rate and efficiency variances, (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Labour rate variance Labour officiency variance b. Prepare a Journal entry to record the incurrence of direct labour cost for the year. (If no entry is required for a transaction, select "No journal entry required in the first account field.) b. Prepare a journal entry to record the incurrence of direct labour cost for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
