Refer to the information in PA9-5 for Bullseye Company.

Bullseye has the following actual results for the month of September:
Number of units produced and sold ....... 140,000
Number of square feet of corkboard used ..... 360,000
Cost of corkboard used ............ $ 756,000
Number of labor hours worked ....... 148,000
Direct labor cost ............$1,938,800
Variable overhead cost ........... $ 72,000
Fixed overhead cost ........... $ 50,000

Required:
Prepare the journal entries to record the following for Bullseye:
1. Direct materials costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories.
2. Direct labor and related variances.
3. Variable overhead costs and relatedvariances.

Transcribed Image Text:

Standard Price Standard Quantity Standard Unit Cost (Rate) Direct materials (cork board) Direct labor Variable manufacturing overhead 2.5 sq. ft. 1 hr 1 hr $ 2.00 per sq. ft. $14.00 per hr $0.50 per hr 5.00 14.00 0.50 based on direct labor hours) Fixed manufacturing overhead 0.25 $40,000160,000 units)