Trueform Products, Inc, produces a broad line of sports equipment and usos a sta

Question

Trueform Products, Inc, produces a broad line of sports equipment and usos a standard cost system for control purposes. Last year the oompany produced 4,700 varsity footballs. The standard costs associated with this foolball, along with the actual costs incurred last year, are given below (per football): Direct materials Standard: 4.1 feet at $3.20 per foot$ 13.12 Actual: 4.5 feet at $3.10 per foot Standard 4.1 feet t$3.20 pr foot $13.95 Standard: 1.50 hours at $5.00 per hour 7.50 128 7.28 Actual: 1.30 hours at $5.60 per hour Variable manufacturing overhead 2.70 Standard: 1.50 hours at $1.80 per hour Actual: 1.30 hours at $2.40 per hour 3.12 Total cost per footbal 23.32 $2435 The president was elated when he saw that actual costs exceeded standard costs by only $ football. He stated, "I was afraid that our unit cost might get out of hand when we gave out year in order to stimulate output But it's obvious our costs are well under control 1.03 per There was no inventory of materials on hand to start the year. During the year, 21,150 feet of materials were purchased and used in production. Required 1. For direct materials: a. Compute the price and quantity variances for the year. (Indicate the offect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (i.e, zero variance).) Price variance Quantity variance b. Prepare journal entries to record all activity relating to direct materials for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) General Journal Debit Credit Raw materials Materials quantity variance MacBook

Explanation / Answer

Direct material Variance= (AP- SP)* Actual Qty (3.1-3.2)*4700 470(A) Quantity Variance= ( SQ AQ ) × SP (5159-4700)*3.2 1469(F)

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