Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80) $4.20 Direct labor (1.1 hr. @ $20) 22.00    Total prime cost $26.20 During the year, Haversham produced 9,500 shirts. The actual fabric purchased was 14,150 yards at $2.72 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,570 hours at $19.60 per hour. Required: Break down the total budget variance for direct materials into a price variance and a usage variance. Materials Price Variance     Materials Usage Variance Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank or enter "0". Price Variance   - Select - - Select -     - Select - - Select -     - Select - - Select - Usage Variance   - Select - - Select -     - Select - - Select -     - Select - - Select -

Manji

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 199,800 lbs. at $5.90 197,800 lbs. at $5.70 Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $2.90 $53,110 variable cost Fixed cost, $4.60 $88,826 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Direct Materials Quantity Variance Total…

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: