The accountants for Monoglut, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in March:

Instructions
a. Compute the materials price variance and the materials quantity variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to record the cost of direct materials used during March in the Work in Process account (at standard).
b. Compute the labor rate variance and the labor efficiency variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to record the cost of direct labor used during March in the Work in Process account (at standard).
c. Compute the overhead spending variance and the overhead volume variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to assign overhead cost to production inMarch.

Transcribed Image Text:

Standard Actual Cost Cost Direct materials Standard: 12 ounces at $0.20 per ounce Actual: 13 ounces at $0.22 per ounce .. . S 2.40 S 2.86 Direct labor Standard: 0.60 hours at $12.00 per hour.... Actual: 0.50 hours at $13.00 per hour . . . . 7.20 6.50 Manufacturing overhead: Standard: $6,000 fixed cost and $4,000 variable cost for 10,000 units normal monthly volume 1.00 Actual: $6,000 fixed cost and $2,540 variable cost for 7,000 units actually produced in March 1.22 Total unit cost S10.60