Refer to the FlowerMate data set. Assume the company uses a standard cost accounting system.
In FlowerMate Data
Direct materials (resin) ................................. 10 pounds per pot at a cost of $4.00 per pound
Direct labor .................................................................. 2.0 hours at a cost of $16.00 per hour
Standard variable manufacturing overhead rate ........................... $3.00 per direct labor hour
Budgeted fixed manufacturing overhead .................................................................. $10,000
Standard fixed MOH rate ................................................ $7.00 per direct labor hour (DLH)
Direct materials .............................. Purchased 11,200 pounds at a cost of $4.20 per pound;
Used 10,500 pounds to produce 1,000 pots
Direct labor .......................... Worked 2.2 hours per flower pot at a cost of $15.00 per hour
Actual variable manufacturing overhead ...................... $3.40 per direct labor hour for total
actual variable manufacturing overhead of $7,480
Actual fixed manufacturing overhead ....................................................................... $9,800
Standard fixed manufacturing overhead allocated based on actual production ..... $14,000
Requirements
1. Record FlowerMate's direct materials and direct labor journal entries.
2. Record FlowerMate's journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Manufacturing Overhead account.
3. Record the journal entries for the completion and sale of the 1,000 flower pots, assuming FlowerMate sold (on account) all of the flower pots at a sales price of $480 each (there were no beginning or ending inventories.)