gnments/457253 rTY?Arnson Onford English Det M McGraw-Hill Connec D Pinterest Ki
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gnments/457253 rTY?Arnson Onford English Det M McGraw-Hill Connec D Pinterest Kimmel, Accounting, Ge Hele I S CALCULATOR PRINTER VERSION BACK Exercise 23-22 Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $3.00 per pound) Direct labor (6 hours at $14.00 per hour) During the month of April, the company manufactures 150 units and incurs the following actual costs. Direct materials purchased and used (930 pounds) Direct labor (930 hours) Journalize the entries to record the materials and labor variances. (Credit account titles are automatically indented when $18.00 $84.00 $2,976 $12,834 amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 125.) Account Titles and Explanation Debit Credit To record materials price variance) ^????Explanation / Answer
Material price variance = actual quantity * actual price - actual quantity * standard price
= (930 pounds * $3.2) - (930 pounds * $3)
= $2976 - $2790
= $186 unfavourable
Journal entry:
Materials $2790
Materials price variance $186
To accounts payable $2976
Material quantity variance = (standard quantity - actual quantity) * standard price
= (900 pounds - 930 pounds) * $3
= ($90) favourable
Journal entry:
Work in process $2790
To Material quantity variance $90
To materials $2700
Labor price variance = (standard rate - actual rate) * actual hours
= ($14 - $13.8) * 930 hours
= $186 favourable
Labor quantity variance = (standard hours - actual hours) * standard rate
= (900 hours - 930 hours ) * $14
= ($420) unfavourable
Journal entry:
Work in process (900 hours * $14) $12600
Labor quantity variance $420
To labor rate variance $186
To wages payable(930 * $13.8) $12834.
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