+ - X Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances, 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account 5. Kyler intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done i More Info X a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,600 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 199,000 minutes at a total cost of $29,850. e. Actual overhead cost was $4,975 variable and $35,525 fixed. f. Selling and administrative costs were $98,000 Print Done i Data Table $ $ 0.05 0.36 Direct Materials 0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.12 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.04 per minute) in $ ES 0.12 0.42 0.54 Fixed (3 minutes @ $0.14 per minute) $ 0.95 Total Cost per Coffee Mug Print Done Kyler manufactures coffee mugs that 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 59,900 coffee mugs per month Click the icon to view the cost data) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cout variantes. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is Formula Varance Direct materials cost variance Doctisbor cost anance Select the required formulas, compute the efficiency variances for direct matonals and direct labor, and identify whether each variance is favorable (F) or unfavorable Formula Variance Det sciency variance Debrecyce Requirement 2. Soumalize the purchase and usage of direct material and the accignment of direct labor, including the related variance Record debitor then Begin by using the purchase of direct materials, including the related variance. Prepare a single compound joumal entry) Date Accounts and Explanation Debit Credit This Question: Kyler manufactures coffee mugs that it tells 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 59,900 coffee mugs per month Click the icon to view the cost data)
