PROBLEM $24\mathrm{.}5$B:

Computing and Journalizing Cost Variances

Smooth Corporation is a small producer of paint. During June, the company produced $10,000$ cases of paint. Each case contains $12$ quarts of paint. To achieve this level of production, Smooth purchased and used $34,000$ gallons of direct materials at a cost of $$43,520.$ It also incurred average direct labor costs of $$14$ per hour for the $8,300$ hours worked in June by its production personnel. Manufacturing overhead for the month totaled $$21,000,$ of which $$4,500$ was considered fixed. Smooth's standard cost information for each case of paint is as follows.

$\backslash$table$[[$Direct materials standard price,$$1\mathrm{.}32$ per gallon$],[$Standard quantity allowed per case,$3\mathrm{.}00$ gallons$],[$Direct labor standard rate,$$15$ per hour$],[$Standard hours allowed per case,$0\mathrm{.}80$ direct labor hours$],[$Fixed overhead budgeted,$$5,252$ per month$],[$Normal level of production,$10,100$ cases per month$],[$Variable overhead application rate,$$1\mathrm{.}60$ per case$],[$Fixed overhead application rate cases