The Morocco Company uses a standard cost accounting system and estimates production for the year to...

 

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The Morocco Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour. The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows: Number of units produced Materials purchased (13,300 yards) Materials used in production (yards) Variable overhead costs incurred Fixed overhead costs incurred Direct labor cost incurred ($6.25/hour) Compute for the: 1. Material price and efficiency variance 2. Labor rate and efficiency variance 3. Variable overhead spending and efficiency variance 4. Fixed overhead spending and volume variance Prepare all the Entries 4,500 $ 61,600 13,300 $ 4,380 $ 20,400 $ 57,750 The Morocco Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour. The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows: Number of units produced Materials purchased (13,300 yards) Materials used in production (yards) Variable overhead costs incurred Fixed overhead costs incurred Direct labor cost incurred ($6.25/hour) Compute for the: 1. Material price and efficiency variance 2. Labor rate and efficiency variance 3. Variable overhead spending and efficiency variance 4. Fixed overhead spending and volume variance Prepare all the Entries 4,500 $ 61,600 13,300 $ 4,380 $ 20,400 $ 57,750

Answer rating: 100% (QA)

To compute the variances and prepare the journal entries lets use the given information 1 Material Price and Efficiency Variance Material Price Varian... View the full answer