View the step-by-step solution to:

Question

Martella company makes high- end shoes. The company uses a standard cost system and has set the following standard

for materials and labor for each pair of shoes.

leather ([email protected]$20) $120

direct labour (5h @$16). $80

total prime cost. $200

throughout the year Martella produced 125 pairs of shoes. They sold all of them. Actual leather purchased was 850 strips @$16 per strips. There was no beginning and ending inventory. Actual direct labor was 775 [email protected]$15

1.compute the total variance for labor

2.Compute the materials price car and materials usage variance

3.compute the rate variance and the labor efficiency variance

4.prepare the journal entries

a) to record the transfer of costs to work in processes inventory and record the variances

b)to record the transfer of costs to finished good inventory

c) to close the variance to cost of goods sold at the end of year

5.assume there was a labor Strike and the cost of the labor inefficiency was an extraordinary item. Prepare the journal entry to properly record the year end disposition of the labor variances.

6.what might be good way to check your variance result to evaluate overall standard versus actual costs for the year?

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes