Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 11, Problem 11.22E
Data for Levine Inc. are given in E11-7.
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Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance.
Journalizing labor entries
The following direct labor variance analysis was performed tor Morris.
Requirements
Record Morris’s direct labor journal entry (use Wages Payable).
Explain what management will do with this variance information.
Required information
[The following information applies to the questions displayed below.]
Alvarez Company for the current period shows a $28,000 favorable volume variance and a $69,000 unfavorable
controllable variance. Standard overhead applied for the period is $228,000.
a. What is the actual total overhead cost incurred for the period?
b. What is the total overhead variance and is it favorable or unfavorable?
a. Actual total overhead
b. Total overhead variance
S
269,000
Chapter 11 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5QCh. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...
Ch. 11 - In the direct labor variance matrix, there are...Ch. 11 - Mikan Company's standard predetermined overhead...Ch. 11 - How often should variances be reported to...Ch. 11 - What circumstances may cause the purchasing...Ch. 11 - What are the four perspectives used in the...Ch. 11 - Prob. 16QCh. 11 - What are some examples of nonfinancial measures...Ch. 11 - (a) How are variances reported in income...Ch. 11 - (a) Explain the basic features of a standard cost...Ch. 11 - If the 9 per hour overhead rate in Question 12...Ch. 11 - What is the purpose of computing the overhead...Ch. 11 - Alma Ortiz does not understand why the overhead...Ch. 11 - John Hsu is attempting to outline the important...Ch. 11 - Lopez Company uses both standards and budgets. For...Ch. 11 - Tang Company accumulates the following data...Ch. 11 - Labor data for making one gallon of finished...Ch. 11 - Simba Company's standard materials cost per unit...Ch. 11 - Mordica Company's standard labor cost per unit of...Ch. 11 - In October, Pine Company reports 21,000 actual...Ch. 11 - Prob. 11.7BECh. 11 - Journalize the following transactions for Combs...Ch. 11 - Prob. 11.9BECh. 11 - Some overhead data for Pine Company are given in...Ch. 11 - Using the data in BE11-6 and BE11-10, compute the...Ch. 11 - Larkin Company accumulated the following standard...Ch. 11 - The standard cost of product 777 includes 2 units...Ch. 11 - The standard cost of product 5252 includes 1.9...Ch. 11 - Tropic Zone Corporation experienced the following...Ch. 11 - Parsons Company is planning to produce 2,000 units...Ch. 11 - Hank Itzek manufactures and sells homemade wine,...Ch. 11 - Stefani Company has gathered the following...Ch. 11 - Monte Services, Inc. is trying to establish the...Ch. 11 - The standard cost of Product B manufactured by...Ch. 11 - Lewis Company's standard labor cost of producing...Ch. 11 - Levine Inc., which produces a single product, has...Ch. 11 - The following direct materials and direct labor...Ch. 11 - You have been given the following information...Ch. 11 - During March 2017, Toby Tool Die Company worked...Ch. 11 - Manufacturing overhead data for the production of...Ch. 11 - Byrd Company produces one product, a putter called...Ch. 11 - Ceelo Company purchased (at a cost of 10,200) and...Ch. 11 - Picard Landscaping plants grass seed as the basic...Ch. 11 - Urban Corporation prepared the following variance...Ch. 11 - Fisk Company uses a standard cost accounting...Ch. 11 - The following is a list of terms related to...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Vista Company installed a standard cost system on...Ch. 11 - Lopez Company uses a standard cost accounting...Ch. 11 - Data for Levine Inc. are given in E11-7....Ch. 11 - The information shown below was taken from the...Ch. 11 - Prob. 11.24ECh. 11 - Seacrest Company's overhead rate was based on...Ch. 11 - Rogen Corporation manufactures a single product....Ch. 11 - Ayala Corporation accumulates the following data...Ch. 11 - Rudd Clothiers is a small company that...Ch. 11 - Kansas Company uses a standard cost accounting...Ch. 11 - Hart Labs, Inc. provides mad cow disease testing...Ch. 11 - Jorgensen Corporation uses standard costs with its...Ch. 11 - Using the information in P11-1A, compute the...Ch. 11 - Using the information in P11-2A, compute the...Ch. 11 - Using the information in P11-3A, compute the...Ch. 11 - Using the information in P11-5A, compute the...Ch. 11 - CURRENT DESIGNS The executive learn at Current...Ch. 11 - Prob. 11.1BYPCh. 11 - Ana Carillo and Associates is a medium-sized...Ch. 11 - Glassmaster Company is organized as two divisions...Ch. 11 - Prob. 11.4BYPCh. 11 - Prob. 11.5BYPCh. 11 - Prob. 11.6BYPCh. 11 - At Symond Company production workers in the...Ch. 11 - Prob. 11.9BYP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Refer to the information for Deporte Company above. Required: 1. Prepare a journal entry for the purchase of raw materials. 2. Prepare a journal entry for the issuance of raw materials. 3. Prepare a journal entry for the addition of labor to Work in Process. 4. Prepare a journal entry for the closing of variances to Cost of Goods Sold.arrow_forwardPrepare summarized journal entries to record both the actual costs and standard costs for direct materials and conversion costs, including the variances for both production costs.arrow_forwardInstruction: a. Compute for the factory overhead variance b. Make the journal entries that relate to the factory overhead 19F.arrow_forward
- Assuming the amount is material, the disposition of overhead variance should be allocated pro rata to the following, except: A Raw materials inventory B Cost of goods sold Work in process inventory Finished goods inventoryarrow_forwardComputing and journalizing standard cost variances McKnight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Direct Materials (0.2 lbs. @ $0.25 per Ib.) $ 0.05 Direct Labor (3 minutes @ $0.11 per minute) 0.33 Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) $ 0.18 Fixed (3 minutes @ $0.15 per minute) 0.45 0.63 Total Cost Per Coffee Mug $ 1.01 Actual cost and production information for July 2020 follow: а. Actual production and sales were 62,500 coffee mugs. b. Actual direct materials usage was 10,000 Ibs. at an actual cost of $0.17 per Ib. Actual direct labor usage of 198,000 minutes at a cost of $25,740. d. Actual overhead cost was $8,500 variable and $32,100 fixed. e. Selling and administrative costs were $110,000. C.arrow_forwarda) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. What is the balance on the account before performing end of period closing entries? Is manufacturing overhead under- or over- absorbed? State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial. b) What is the balance in the Cost of Goods Sold account after the adjustment?arrow_forward
- I need help with parts B & C please!! REQUIRED C. Record entry for direct material costs payable and material variances. Record entry for direct labor costs payable and labor variances. Record the entry for variable overhead applied. Record the entry for variable overhead payable. Record the variable overhead variances. Record the entry for fixed overhead applied. Record the entry for fixed overhead payable. Record the fixed overhead variances. Record entry to transfer finished goods to inventory. Record sales on accounts. Record cost of goods sold. Record the disposition of variances to cost of goods sold.arrow_forwardRequirement 1. Record Brookman's direct labor journal entry (use Wages Payable). Journalize the incurrence and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry. Record debits first, then credits. Select the explanations on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit - X Data Table AC x AQ SC x AQ SC x SQ $13.00 per DLHr $16.00 per DLHR $16.00 per DLHr 1,650 DLHF 1,650 DLHR 1.200 DLHr $21,450 $26.400 $19,200 Requirements 1. Record Brookman's direct labor journal entry (use Wages Payable). 2. Explain what management will do with this variance information. Cost Efficiency Variance Variance $4.950 F S7,200 U Print Done Print Donearrow_forwardQ.Prepare journal entries for manufacturing overhead costs and their variancesarrow_forward
- Briefly describe various variances relating to factory overheads. How material, labor and overhead variances calculated and recorded?arrow_forward(d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account, clearly showing the balance before closing the account. State the journal entries necessary to dispose of the 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 overhead variance (g) Post the appropriate entries to Work in Process Inventory account & determine the account balance on March 31, the end of the quarter.arrow_forward(a) Compute KRAFT ‘R’ US’ predetermined manufacturing overhead rate for 20X8. (b) State the journal entries necessary to record the above transactions in the general journal. Assume that KRAFT ‘R’ US 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 entriesnecessary to dispose of the variance. (d)What is the balance in the Cost of Goods Sold account after the adjustment? (e) Compute KRAFT ‘R’ US’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.arrow_forward
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