A summary of Glendale Company'. manufacturing variance report for May 2016 follows:

Standard material cost per unit of product is 0.5 pounds at $8.40 per pound, and standard direct labor cost is 1.5 hours at $14.00 per hour. The total actual materials cost represents 4,906 pounds purchased at $8.70 per pound. Total actual labor cost represents 14,200 hours at $13.60 per hour. Ac-cording to standards, variable overhead rate is applied at $1.70 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10.000 units of product). Assume that all fixed overhead is applied to work in progress inventory.

Required

a. Calculate variances for materials price and efficiency. labor rate and efficiency. and variable overhead spending and efficiency.

b. Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead.

Transcribed Image Text:

Direct material Direct labor.... Variable overhead. Fixed overhead. Total Standard Costs (9,200 units) $ 38,640 193,200 23,460 9,660 $264,960 Total Actual Costs (9,200 units) $ 42,630 193,120 23,230 9,660 $268,640 Variances $3,990 U 80 F 230 F $3,680 U Direct material Direct labor.... Variable overhead. Fixed overhead. Total Standard Costs (9,200 units) $ 38,640 193,200 23,460 9,660 $264,960 Total Actual Costs (9,200 units) $ 42,630 193,120 23,230 9,660 $268,640 Variances $3,990 U 80 F 230 F $3,680 U

Answer rating: 100% (QA)

a Materials Price Variance 840 870 x 4900 pounds 1470 U Materials Efficiency Var... View the full answer