(Work does not to be included just answers would be fine so I can compare them to mine thank you)

Question 1.

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 27 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes.

Required:

1. Calculate the number of quarts of oil that should have been used (SQ) for 920 oil changes. fill in the blank 1 quarts

2. Calculate the hours of direct labor that should have been used (SH) for 920 oil changes. fill in the blank 2 direct labor hours

3. What if there had been 910 oil changes in June? Would the standard quantities of oil (in quarts) and of direct labor hours be higher or lower than the amounts calculated in Requirements 1 and 2?

What would the new standard quantities be? Round your answers to two decimal places.

SQ	fill in the blank 4	quarts
SH	fill in the blank 5	direct labor hours

Quetion2.

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 21 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 900 oil changes.

Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:

Actual number of oil changes performed: 900 Actual number of quarts of oil used: 6,900 quarts Actual price paid per quart of oil: $5.00 Standard price per quart of oil: $4.95

Required:

1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent.

MPV	$fill in the blank 1
MUV	$fill in the blank 3

2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent.

$fill in the blank 5

3. What if the actual number of quarts of oil purchased in June had been 6850 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent.

What would be the materials price variance (MPV)?

$fill in the blank 7

What would be the materials usage variance (MUV)?

$fill in the blank 9

Question 3

Kavallia Company set a standard cost for one item at $328,000; allowable deviation is $14,500. Actual costs for the past six months are as follows:

June	$331,500		September	$314,000
July	344,000		October	332,000
August	346,400		November	323,000

Required:

1. Calculate the variance from standard for each month.

	Variance
June	$fill in the blank 1
July	$fill in the blank 3
August	$fill in the blank 5
September	$fill in the blank 7
October	$fill in the blank 9
November	$fill in the blank 11

Which months should be investigated?

June
July
August
September
October
November

2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or $14,500. Now which months should be investigated?

June
July
August
September
October
November

Question 4

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

	Debit	Credit
Direct Materials Price Variance	$14,250
Direct Materials Usage Variance		$1,130
Direct Labor Rate Variance		810
Direct Labor Efficiency Variance	$12,820

Unadjusted Cost of Goods Sold equals $1,510,000, unadjusted Work in Process equals $316,000, and unadjusted Finished Goods equals $230,000.

Required:

1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0".

		fill in the blank 8ccd2802a000ff2_2	fill in the blank 8ccd2802a000ff2_3
		fill in the blank 8ccd2802a000ff2_5	fill in the blank 8ccd2802a000ff2_6
		fill in the blank 8ccd2802a000ff2_8	fill in the blank 8ccd2802a000ff2_9
	Close variances with debit balance
		fill in the blank 8ccd2802a000ff2_11	fill in the blank 8ccd2802a000ff2_12
		fill in the blank 8ccd2802a000ff2_14	fill in the blank 8ccd2802a000ff2_15
		fill in the blank 8ccd2802a000ff2_17	fill in the blank 8ccd2802a000ff2_18
	Close variances with credit balance

What is the adjusted balance in Cost of Goods Sold after closing out the variances?

$fill in the blank 6e3aadf99f9f063_1

2. What if any ending balance in a variance account that exceeds $11,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $166,000, and the prime cost in Finished Goods is $129,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

(a)		fill in the blank e9d1a100107b052_2	fill in the blank e9d1a100107b052_3
		fill in the blank e9d1a100107b052_5	fill in the blank e9d1a100107b052_6
		fill in the blank e9d1a100107b052_8	fill in the blank e9d1a100107b052_9
(b)		fill in the blank e9d1a100107b052_11	fill in the blank e9d1a100107b052_12
		fill in the blank e9d1a100107b052_14	fill in the blank e9d1a100107b052_15
		fill in the blank e9d1a100107b052_17	fill in the blank e9d1a100107b052_18
		fill in the blank e9d1a100107b052_20