[The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $30,000 favorable volume variance and a $55,500 unfavorable controllable variance. Standard overhead applied for the period is $222,000. rez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Invento ount and to record any variances. Journal entry worksheet < A Record overhead applied to production and overhead variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit

[The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $30,000 favorable volume variance and a $55,500 unfavorable controllable variance. Standard overhead applied for the period is $222,000. rez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Invento ount and to record any variances. Journal entry worksheet < A Record overhead applied to production and overhead variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 24E: Which of the following is true concerning labor variances that are not material in amount? a. They...

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Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Unadjusted Cost of Goods Sold equals 1,500,000, unadjusted Work in Process equals 236,000, and unadjusted Finished Goods equals 180,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds 10,000 is considered material? Close the immaterial variance accounts to Cost of Goods Sold and prorate the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is 1,050,000, the prime cost in Work in Process is 165,200, and the prime cost in Finished Goods is 126,000. What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances? (Round ratios to four significant digits. Round journal entries to the nearest dollar.)
At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported as part of Overall Variance on the balance sheet at the end of the year.
Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigleys trial balance?
Rath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Endicotts trial balance?
Madison Company uses the following rule to determine whether direct labor efficiency variances ought to be investigated. A direct labor efficiency variance will be investigated anytime the amount exceeds the lesser of 12,000 or 10 percent of the standard labor cost. Reports for the past five weeks provided the following information: Required: 1. Using the rule provided, identify the cases that will be investigated. 2. Suppose that investigation reveals that the cause of an unfavorable direct labor efficiency variance is the use of lower quality direct materials than are usually used. Who is responsible? What corrective action would likely be taken? 3. Suppose that investigation reveals that the cause of a significant favorable direct labor efficiency variance is attributable to a new approach to manufacturing that takes less labor time but causes more direct materials waste. Upon examining the direct materials usage variance, it is discovered to be unfavorable, and it is larger than the favorable direct labor efficiency variance. Who is responsible? What action should be taken? How would your answer change if the unfavorable variance were smaller than the favorable?
Following information has been obtained from the records of a manufacturing organisation using the standard costing system. Standard Actual Production (units) Working days Fixed overheads ($) Variable overheads ($) 4,000 3,800 20 21 40,000 39,000 12,000 12,000 You are required to calculate the following overhead variances : (1) (1I) Fixed overhead variances : (a) Expenditure variances; (b) Volume Variances; (c) Efficiency variances; (d) Calendar variances. Variable overheads variance;
For the current period, a company shows a $3,550 unfavorable controllable variance, a $1,950 favorable volume variance, and $210,000 of standard overhead applied. The company records standard costs in its accounts. Prepare the entry to record overhead applied to production and overhead variances. View transaction list Journal entry worksheet < A Record overhead applied to production and overhead variances. Note: Enter debits before credits Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
Required information [The following information applies to the questions dispiayed below] Alvarez Company for the current period shows a $22,000 favorable volume variance and a $59.000 unfavorable controllable variance. Standard overhead applied for the period is $233,000. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances. View transaction list Journal entry worksheet A Record overhead applied to production and overhead variances. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Required: (a) Compute, BuiltbyHands Stores predetermined manufacturing overhead rate for 20X8. (b) State the journal entries necessary to record the above transactions in the general journal. Assume that, BuiltbyHands Stores uses the perpetual inventory system. (c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and state the Balance on the account before performing end of period closing entries. Show the journal entries Necessary to dispose of the variance. (d) What is the balance in the Cost of Goods Sold account after the adjustment? (e) Compute, BuiltbyHands Stores‘gross profit earned on the jobs completed. (f) Open T-accounts for Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts & determine the ending account balances.
Required:(a) Compute Elite’s predetermined manufacturing overhead rate for 2020. (b) Calculate the total manufacturing costs for each job. (c) Using the total figures, record the above transactions in the general journal. (d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account, clearlyshowing the balance before closing the account. State the journal entries necessary to dispose ofthe variance. Assume that the manufacturing overhead variance is immaterial. (e) What is the balance in the Cost of Goods Sold account after the adjustment? (f) Compute Elite’s gross profit earned on the jobs sold, after adjusting for the manufacturing overheadvariance (g) Post the appropriate entries to Work in Process Inventory account & determine the account balanceon March 31, the end of the quarter.