You have a business manufacturing man buns for depilous hipster wannabes. You produce these man-buns (MB) in batches of 100. Each MB hs the following manufacturing standards

Direct materials 2 locks of hair $10.00 per lock

Direct labor 1.5DLH $15.00 per DLH

Indirect materials $300 per batch

other indirect manufacturing costs $5000 per month

Normal output 10 batches per month

total capacity 11 batches per month

There is no beginning or ending inventory for WIP and Finished Goods

During april 2016 you made 11 batches of MB's and spend/incurred the following:

Locks of hair 2310 locks $22,638 in total

direct labor 1600 DLH $24,400 in total

Variable OH(Indirect materials) $3150 in total

Fixed O/H(other indirect mfg costs) $5220 in total

1. perpare an analysis of actual production costs for April compared to budget adjusted for output (Flex Budget). Identify the usage/efficiency, price/rate, spending, and volume variances as appropriate.

2. record journal entries to record the use of direct materials, direct labor, and variable and fixed manufacturing overhead. post costs to WIP first, then transfer all of WIP to Finished Goods to COGS- remember there is no beginning or ending inventory for WIP or Finished Goods.

3. Prepare the adjusting journal entry to close all of the variances to COGS.

4. Ferd is responsible for buying your direct materials. Did he do a good job in april? WHy?

5. Franny is in charge of the use of the direct materials. Did she do a good job in april? Why?

6. Franny is also in charge of the use of direct labor. Did she doa good job in april with regareds to labor usage/efficiency? Why?

7. Futz sets hourly wage rates for the direct labor. Did he do a good job in april? Why?

8. You are in charge of all manufacturing overhead. Did you do a good job managing overhead in april? Why?