Direct materials control direct materials price var

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Direct Materials ControlDirect Materials Price VarDirect Materials Efficiency Varianceabab28500285005001140Work-In-Process ControlDirect Mfg. Labor Price VarDirect Mfg. Labor Efficiency Variance(b)c.2964013390297 c3193 c.Wages Payable ControlAccounts Payable Control9900 c29000 aOPTION 2Direct Materials Control42180Direct Materials Price Variance740Accounts Payable Control42920Work-In-Process Control29640Direct Materials Efficiency Variance1140Direct Materials Control28500Direct Materials ControlDirect Materials Price VarianceDirect Materials Efficiency Varianceabab42180285007401140Work-In-Process ControlDirect Mfg. Labor Price VarDirect Mfg. Labor Efficiency Variancea29640Wages Payable ControlAccounts Payable Controla.42920Select the Statement(s) that tell how these journal entries differ from normal-costing entriesDirect Materials Control is carried at standard unit prices rather than actual unit pricesVariances appear for direct materials and direct manufacturing labor under standard costing but not under normal costingWork-In-Process control is no longer carried at “actual” costs
Sheet14Page 14Shutter, Inc. manufactures a full line of well-known sunglassesWhitley will be asked to explain the following performance report for 2011frames and lenses.Shutter uses a standard costing system toset attainable standards for direct materials, labor, and overheadActual ResStatic-Budget Amountscosts.Shutter reviews and revises standards annually, asUnits Sold68007600necessary.Department managers, who evaluations andRevenues530400585200bonuses are affected by their department's performance, are heldVariable manufacturing costs360264305520responsible to explain variances in their department performanceFixed manufacturing costs8500090000reports.Gross Margin85136189680Recently, the manufacturing variances in the Index prestige line ofWhitley collected the following informationsunglasses have caused some concern.For no apparent reason,Direct Materials: Frames.Static Budget30400 Standard input for 2011 is2unfavorable materials and labor variances have occurred.At theDirect Materials: Lenses. Static Budget136800 Standard input for 2011 is6monthly staff meeting, Jorge Whitley, manager of the Index line,Direct Manufacturing Labor. Stat Budget138320 Standard input for 2011 is1.3will be expected to explain his variances and suggest ways ofimproving performance.Assume there was no variable manufacturing overhead costs.Theactual variable manufacturing costs for 2011 are as follows.Direct Materials: Frames.Static Budget62560 Standard input for 2011 is4Direct Materials: Lenses. Static Budget157760 Standard input for 2011 is8Direct Manufacturing Labor. Stat Budget139944 Standard input for 2011 is14.7Requirement 1:Actual Sales PriceBudgeted Sales PriceActual Sales VolumeSelling Price Variance787768006800Actual Res.Flex-Bud-VarFlexible BudSales Volume VarStatic BudgetUnits Sold680068007600Revenues5304006800F523600U585200Variable CostsDirect Materials-Frames6256035360U272003200F30400Direct materials-Lenses15776035360U12240014400F136800Direct MFG Labor13994416184U12376014560F138320Total Variable Costs36026486904U27336032160F305520Fixed Manufacturing costs850005000F90000090000

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Term
Fall
Professor
Durham
Tags
Cost Accounting, purchasing manager, Direct manufacturing Labor

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