PROBLEM $24\mathrm{.}4$A

Computing and Journalizing Cost Variances

Sven Enterprises is a large producer of gourmet pet food. During April, it produced $147$ batches of puppy meal. Each batch weighs $1,000$ pounds. To produce this quantity of output, the company purchased and used $148,450$ pounds of direct materials at a cost of $$593,800.$ It also incurred direct labor costs of $$17,600$ for the $2,200$ hours worked by employees on the puppy meal crew. Manufacturing overhead incurred at the puppy meal plant during April totaled $$3,625,$ of which $$2,450$ was considered fixed. Sven$$s standard cost information for $1,000-$pound batches of puppy meal is as follows.

Direct materials standard price $$4\mathrm{.}20$ per pound

Standard quantity allowed per batch $1,020$ pounds

Direct labor standard rate $$8\mathrm{.}50$ per hour

Standard hours allowed per batch $14$ direct labor hours

Fixed overhead budgeted $$2,800$ per month

Normal level of production $140$ batches per month

Variable overhead application rate $ $9\mathrm{.}00$ per batch

Fixed overhead application rate $($$$2,800140$ batches$)20\mathrm{.}00$ per batch

Total overhead application rate $$29\mathrm{.}00$ per batch

Instructions

Compute the materials price and quantity variances.

Compute the labor rate and efficiency variances.

Compute the manufacturing overhead spending and volume variances.

Record the journal entry to charge materials $($at standard$)$ to Work in Process.

Record the journal entry to charge direct labor $($at standard$)$ to Work in Process.

Record the journal entry to charge manufacturing overhead $($at standard$)$ to Work in Process.

Record the journal entry to transfer the $147$ batches of puppy meal produced in April to Finished Goods.

Record the journal entry to close any over$-$ or underapplied overhead to Cost of Goods Sold.