Preparing Journal Entries to Record Fixed Manufacturing Overhead Costs, Variances

Refer to the information in PB9-1 for Sweetly Sent.

Sweetly Sent has the following actual results for the month of February:
Number of units produced and sold ....... 38,500
Number of ounces of wax purchased and used ... 583,000
Cost of wax used .............. $ 37,895
Number of labor hours worked ......... 9,900
Direct labor cost ..............$136,620
Variable overhead cost ............ $ 3,630
Fixed overhead cost ............. $ 9,900

Required:
Prepare the journal entries to record Sweetly Sent’s fixed manufacturing overhead costs and related variances for lastyear.

Transcribed Image Text:

Standard Quantity Standard Price (Rate) Standard Unit Cost $ 0.05 per oz. $14.00 per hr $0.40 per hr. $0.75 3.50 0.10 Direct materials (wax) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($10,000 40,000 units) 15 oz. 0.25 hr 0.25 hr 0.25