The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime...
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The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following information is available for the last operating month: • The plant produced and sold 28,888 fixtures for $72 each. Budgeted production was 30,000 fixtures. • Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs • Fixed production overhead costs: Monthly budget $815,600 • Fixed overhead is applied at the rate of $30 per fixture. • Actual production costs: $ 16.00 4.00 8.00 $28.00 Direct materials purchased and used: 106,400 pounds at $4.34 Direct labor: 2,870 hours at $44.00 Variable overhead: 12,000 machine-hours at $19.54 per hour Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Complete this question by entering your answers in the tabs below. Required A Required B Required C $461,776 126, 280 234, 480 859,000 Prepare a fixed overhead cost variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Total fixed overhead cost variance F Journal entry worksheet A B Event 1 C Note: Enter debits before credits. Record entry D E Record entry for direct material costs payable and material variances. General Journal F Clear entry G H I Debit L Credit View general journal > The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following information is available for the last operating month: • The plant produced and sold 28,888 fixtures for $72 each. Budgeted production was 30,000 fixtures. • Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs • Fixed production overhead costs: Monthly budget $815,600 • Fixed overhead is applied at the rate of $30 per fixture. • Actual production costs: $ 16.00 4.00 8.00 $28.00 Direct materials purchased and used: 106,400 pounds at $4.34 Direct labor: 2,870 hours at $44.00 Variable overhead: 12,000 machine-hours at $19.54 per hour Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Complete this question by entering your answers in the tabs below. Required A Required B Required C $461,776 126, 280 234, 480 859,000 Prepare a fixed overhead cost variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Total fixed overhead cost variance F Journal entry worksheet A B Event 1 C Note: Enter debits before credits. Record entry D E Record entry for direct material costs payable and material variances. General Journal F Clear entry G H I Debit L Credit View general journal >
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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