^aBE 196

Overhead data for Glazier Inc. are given in BE 195. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $60,000 fixed.

  

Compute the manufacturing overhead controllable variance.

^aBE 197

Using the data in BE 195 and BE 196, compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours.

^aBE 198

Jet Industries purchased 6,000 units of raw material on account for $17,600, when the standard cost was $18,000. Later in the month, Jet Industries issued 5,600 units of raw materials for production, when the standard units were 5,800.

Instructions

Journalize the transactions for Jet Industries to account for this activity.

^aBE 199

Pedra, Inc. incurred direct labor costs of $54,000 for 6,000 hours. The standard labor cost was $55,200. During the month, Pedra assigned 6,000 direct labor hours costing $54,000 to production. The standard hours were 6,200.

Instructions

Journalize the transactions for Pedra, Inc. to account for this activity.

^aBE 200

Manufacturing overhead data for the production of Product B by North Bank, Inc. are as follows.

Overhead incurred for 69,000 actual direct labor hours worked$206,000

Overhead rate (variable $2.00; fixed $1.00) at normal capacity of

72,000 direct labor hours$3.00

Standard hours allowed for work done69,000

Instructions

Compute the controllable and volume overhead variances.