- X Data table - X More info E Direct Materials (0.2 lbs @ $0.25 per lb) 0.05 a. There were no beginning or ending inventory balances. All expenditures were on Direct Labor (3 minutes @ $0.12 per minute) account. 0.36 b. Actual production and sales were 62,700 coffee mugs. Manufacturing Overhead Actual direct materials usage was 10,000 lbs. at an actual cost of $0. 17 per lb. AC = actual cost; Variable (3 minutes @ $0.04 per minute) $ 0.12 d. Actual direct labor usage was 200,000 minutes at a total cost of $28,000 Fixed (3 minutes @ $0.13 per minute) 0.39 0.51 e. Actual overhead cost was $6,000 variable and $34,900 fixed. f . Total Cost per Coffee Mug $ Selling and administrative costs were $110,000 0.92 Prem ctual quantity; Print Done 6 29 Print Done Q ot All Direct labor efficiency variance (AQ - SQ) x AC 1547 U Uplo Help me solve this Demodocs example Get more help - Clear all Check answerPreston manufactures coffee mugs that it sells to other companies for customizing with their own logos. Preston Actual cost and production information for July 2024 follows: prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of i (Click the icon to view actual cost and production information.) a coffee mug is based on static budget volume of 60,000 coffee mugs per month: (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials 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: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance = (AC - SC) x AQ = $ 800 F Direct labor cost variance (AC - SC) x AQ $ 4,000 U Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance (AQ - SQ) x SC $ 535 F Direct labor efficiency variance (AQ - SQ) x AC 1547 U Help me solve this Demodocs example Get more help - Clear all Check answerPreston manufactures coffee mugs that it sells to other companies for customizing with their own logos. Preston Actual cost and production information for July 2024 follows: prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of i (Click the icon to view actual cost and production information.) a coffee mug is based on static budget volume of 60,000 coffee mugs per month: FB (Click the icon to view the cost data ) X - X Data table Requirements 1. Compute the cost and efficiency variances for direct materials and direct Direct Materials (0.2 lbs @ $0.25 per lb) $ 0.05 s and di labor. C = actual cost; Direct Labor (3 minutes @ $0.12 per minute) 0.36 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. Manufacturing Overhead: 3. For manufacturing overhead, compute the variable overhead cost and Variable (3 minutes @ $0.04 per minute) $ 0.12 efficiency variances and the fixed overhead cost and volume variances. 0.39 0.51 4. Journalize the actual manufacturing overhead and the allocated Fixed (3 minutes @ $0.13 per minute) manufacturing overhead. Journalize the movement of all production costs $ 0.92 Total Cost per Coffee Mug entify wh from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing ual quantity; Overhead account. 5 . Preston intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done Print Done Help me solve this Demodocs example Get more help - heck