Need help filling in the rest of this, thank you! Exercise 23-22 Your answer is
ID: 2599816 • Letter: N
Question
Need help filling in the rest of this, thank you!
Exercise 23-22 Your answer is partially correct. Try again. 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 amount is entered. Do not indent $18.00 $84.00 $2,976 $12,834 manually. Round answers to O decimal places, e.g. 125.)Explanation / Answer
Answer:-
Explanation:-
Material price variance = (Standard price – Actual price) * Actual quantity purchased
= ($3.00 per pound - $3.20 per pound)*930 pounds
= $186 Unfavourable
Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price
=(900 pounds – 930 pounds)*$3.00 per pound
= $90 Unfavourable
Where:-
Standard Quantity = No. of pounds per unit*Actual output
=6 pounds per unit *150 units =900 pounds
Direct Labor rate variance = (Standard rate – Actual rate) * Actual hours
= ($14.00 per hour - $13.80 per hour)* 930 hours
= $186 Favourable
Direct Labor Efficiency variance=(Standard hours-Actual hours)*Standard rate per hour
=(900 hours – 930 hours)*$14.00 per hour
= $420 Unfavourable
Where:-
Standard Hours = No. of hours per unit*Actual output
= 6 hours per unit *150 units =900 hours
Journal Entry to record Material Quantity variance Account title Debit Credit $ $ Work in process inventory 2700 Raw Material inventory 2790 Direct material quantity variance 90Related Questions
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