CHAPTER 23 HW. ALL INFO PROVIDED. PLEASE ANSWER ALL REQUIREMENTS LISTED BELOW. THANK YOU SO SO SO MUCH! AFTER REQUIREMENT 1,
**PLEASE JOURNALIZE THE PURCHASE AND USAGE OF DIRECT MATERIALS AND THE ASSIGNMENT OF DIRECT LABOR (INCLUDING THE RELATED VARIANCES).
** REQUIREMENT 3: JOURNAL ACTUAL MANUFACTURING OVERHEAD COSTS INCURRED
** REQUIREMENT 4: ADJUST THE MANUFACTURING OVERHEAD ACCOUNT AND RECORD ALL OF THE OVERHEAD VARIENCES
** LAST REQUIREMENT: Stenback intentionally hired more highly skilled workers during
July. How did this decision affect the cost variances? Overall, was the decision wise?
0 Data Table $ 0.05 0.30 Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor ( 3 minutes @ $ 0.10 per minute) Manufacturing Overhead: Variable ( 3 minutes @ $ 0.04 per minute) Fixed 3 minutes @ $ 0.13 per minute) $ 0.12 0.39 0.51 $ 0.86 Total Cost per Coffee Mug Print Done More Info a. There were no beginning or ending inventory balances. All expenditures were on account b. Actual production and sales were 62,700 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per ib. d. Actual direct labor usage was 200,000 minutes at a total cost of $24,000. e. Actual overhead cost was $5,000 variable and $35,500 fixed. f. Selling and administrative costs were $131,000. Print Done Score: 0.08 of 1 pt 3 of 3 (3 complete) HW Score: 69.23%, 2.08 of 3 pts WP23-28A (similar to Question Help Stenback manufactures coffee mugs that it sells to other companies for customizing with their own logos. Stenback 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 60,000 coffee mugs per month: (Click the icon to view the cost data.) Actual cost and production information for July 2018 follows: Click the icon to view actual cost and production information.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead: SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance = = F (AC -SC) X AQ (AC-SC) X AQ $ $ 800 4,000 Direct labor cost variance U Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance = L = (AQ – SQ) X SC (AQ – SQ) X SC =