B D E F G 1 2 3 Standard Costing (38 marks) After graduation from the Business Accounting program at Algonquin college, you proudly accepted a well paying position as a cost accountant for Serenade Manufacturing located in London, Ontario. The following is the standard card for the company's only product: 4 5 6 Manufacturing Costs 7 Direct materials (metres) 8 Direct labour (DL Hrs) 9 Variable overhead (DL Hrs) 10 Fixed overhead (DL Hrs) 11 Standard cost per unit 12 315678 Denominator activity level monthly (DL Hrs) 14 Budgeted Fixed overhead costs monthly Standard Qty or Hrs Standard Price Standard Cost or Rate per Unit 4.0 $ 4.00 $ 16.00 1.5 $ 10.00 15.00 1.5 $ 3.00 4.50 1.5 $ 7.00 10.50 $ 46.00 22,500 $ 157,500 18,015 units. Variable and fixed manufacturing For the past month of February 2022, the company proudly manufactured and sold overhead costs are applied to products on the basis of direct labour hours. All raw materials are direct materials, there are no indirect materials. Additional actual manufacturing results, provided from the Controller, Emily Palmer, include: $ 19 20 Direct materials purchased (metres) 21 Beginning inventory of direct materials (metres) 22 Ending inventory of direct materials (metres) 23 Direct labour 24 Fixed overhead costs 25 Variable overhead costs 26 27 28 Required: Metres or Hours 70,194 $ 4.20 per metre 22,100 22,000 29,256 $ 9.75 per hour $ 155,865 $ 90,000 H A 28 29 30 31 32 33 34 Required: Ms. Palmer has asked you to determine the following results for February 2022: 1. For direct materials: a. Price and quantity variances Price Variance Quantity Variance $ 14,038.80 U 35 36 b. Journal entries to record activity 37 38 39 40 Accounts Raw Materials Accounts Receivable Journal Entries Dr Cr 41 42 43 To record the purchase of raw materials 44 45 46 47 48 To record the usage of raw materials in production 49 50 51 52 53 54 55 56 2. For direct labour: a. Rate and efficiency variances b. Journal entry to record labour activity Rate Variance Efficiency Variance B D E F G 49 50 51 2. For direct labour: 52 a. Rate and efficiency variances 53 Rate Variance 54 55 Efficiency Variance 56 b. Journal entry to record labour activity 57 58 Accounts Journal Entry Dr Cr 59 60 61 62 63 64 65 66 3. Variable overhead spending and efficiency variances 67 68 To record the Direct Labour Spending Variance Efficiency Variance 69 70 71 4. Fixed overhead budget and volume variances 72 Budget Variance 73 74 Volume Variance 75 76 77