using selected information from the answers above, prepare journal entries for the following (omit dates) isolating variances where appropriate

a) the purchase of the direct material (assume on account)

b) the issurance of direct materials to production

c) the incurrence of actual variable manufacturing overhead costs and actual fixed manufacturing overhead.

1) Direct material Price variance = AQ (AP-SP) = 194,040 (8.80 8.50) = 58,212 (unfavourable)

DM Eff. Variance = SP (AQ-SQ) = 8.50 (194,040 196,000) = -16,660 (Favourable)

2) Direct Labour Variance = AQ (AR-SR) = 69,200 (21 21) = 0

Direct Labour Efficiency Variance = SR (AQ-SQ) = 21 (69,200 70,000) = -16,800 (favourable)

3) Overheard

Actual variable overhead cost per unit of cost allocation base = 401,360 / 69,200 = 5.80

Actual fixed overhead cost = 435,960

Budgeted fix overhead cost = 432,000

a. Variance material overhead spending variance = (6-5.80) x 69,200 = 13,840 (favourable)

Variance material overhead efficiency variance = (69,200 70,000) x 6 = -4,800 (favourable)

b. Fixed overhead spending = 432,000 432,960 = -960 (unfavourable)

Fixed volume variance = [72,000 (2.5 x 28,000)] x 6 = 12,000 (favourable)

Becker Co. produces and sells a single product. The standard cost card for the product is stated below: Standard Cost Card - Per Unit Direct Materials, 7 Yards at $8.50 per Yard Direct Labour, 2.5 Direct Labour-Hrs. at $21 per Direct Labour-Hr. Variable Overhead, 2.5 Direct Labour-Hrs. at $6 per Direct Lab.-Hr. Fixed Overhead, 2.5 Direct Labour-Hrs. at $6 per Direct Labour-Hr. Standard Cost Per Unit $59.50 $52.50 $15.00 $15.00 $142.00 The following additional information is available for the year just completed: a. - The company manufactured 28,000 units of product during the year. b. - A total of 194,040 yards of material was purchased during the year at a cost of $8.80 per yard. All of this material was used to manufacture the 28,000 units. There were no beginning or ending inventories for the year. c. - The company worked 69,200 direct labour-hours during the year at a total cost of $1,453,200. d. - Overhead cost is applied to products on the basis of direct labour-hours. Data related to manufacturing overhead costs follow: Becker Co. produces and sells a single product. The standard cost card for the product is stated below: Standard Cost Card - Per Unit Direct Materials, 7 Yards at $8.50 per Yard Direct Labour, 2.5 Direct Labour-Hrs. at $21 per Direct Labour-Hr. Variable Overhead, 2.5 Direct Labour-Hrs. at $6 per Direct Lab.-Hr. Fixed Overhead, 2.5 Direct Labour-Hrs. at $6 per Direct Labour-Hr. Standard Cost Per Unit $59.50 $52.50 $15.00 $15.00 $142.00 The following additional information is available for the year just completed: a. - The company manufactured 28,000 units of product during the year. b. - A total of 194,040 yards of material was purchased during the year at a cost of $8.80 per yard. All of this material was used to manufacture the 28,000 units. There were no beginning or ending inventories for the year. c. - The company worked 69,200 direct labour-hours during the year at a total cost of $1,453,200. d. - Overhead cost is applied to products on the basis of direct labour-hours. Data related to manufacturing overhead costs follow