W P23-28A (similar to) Question Help 0 More Info Kyler manufactures coffee mugs that it sells to other companies for customizing with their own logos. Kyler prepares flexible budgets 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 60,200 coffee mugs per month: (Click the icon to view the cost data.) a. There were no beginning or ending inventory balances. All expenditures were on account. Formula Variance Direct materials cost variance (AC-SC) AQ C. S 800 F = S 6,060 U Direct labor cost variance (AC-SC) AQ b. Actual production and sales were 62,900 coffee mugs. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 202,000 minutes at a total cost of $26,260. Actual overhead cost was $5,050 variable and $35,850 fixed. f. Selling and administrative costs were $126,000. e. Select the required formulas, compute the efficiency varlances for direct materials and direct labor, and Identify whether = fixed overhead; SC = standard cost; SQ = standard quantity.) quantity: FOH Formula Variance Print Done Direct materials efficiency variance (AQ-SQ) * SC $ 845 F 1,330 U Direct labor efficiency variance = (AQ - SQ) SC = $ Direct Materials (0.2 lbs @ $0.25 per lb) umal entry table.) S 0.05 Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the re Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal Direct Labor (3 minutes $0.10 per minute) 0.30 Date Accounts and Explanation Debit Credit Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) S 0.12 Jul. 0.42 0.54 Fixed (3 minutes @ $0.14 per minute) S 0.89 Total Cost per Coffee Mug Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 10 Pemaining Clear All Check