Vartiance Problem - Quiz 5 Name The Muse Corporation manufactures birdhouses It has set up the following standards per finished unit for direct

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Quiz 5 Name ________________________________ The Muse Corporation manufactures birdhouses. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: Direct materials: 10 pounds at $4.50/lb. Direct labor: 0.5 hour at $30 per hour The number of finished units budgeted for January 2009 was 10,000; 9,850 units were actually produced. Actual results for January 2009 were: Direct materials: 98,055 lbs. were used Direct labor: 4,900 hours for a total cost of $154,350 Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchases amounted to 100,000 lbs., at a total cost of $465,000. Required: 1. Compute the January 2009 direct cost variances. 2. Prepare journal entries to record the variances and close the variances to the appropriate account (assume no pro-ration). 1
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Quiz 5 Name ________________________________ 2 1. Direct materials and direct manufacturing labor are analyzed in turn:
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This note was uploaded on 07/08/2011 for the course ACG 4352 taught by Professor Nure. during the Spring '11 term at University of Florida.

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Vartiance Problem - Quiz 5 Name The Muse Corporation manufactures birdhouses It has set up the following standards per finished unit for direct

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