{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Vartiance+Problem - Quiz 5 Name The Muse Corporation...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Quiz 5 Name ________________________________ 2 1. Direct materials and direct manufacturing labor are analyzed in turn: Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern