PROBLEM $24\mathrm{.}8$A

Understanding Cost Variances: Solving for Missing Data

Ripley Corporation has supplied the following information obtained from its standard cost system in June.

Standard price of direct materials

$$6$ per pound

Actual price of direct materials

$$5$ per pound

Standard direct labor rate

$$9$ per hour

Actual direct labor hours in June

$9,500$ hours

The following joumal entries were made during June with respect to Ripley's standard cost system.

Work in Process Inventory $($at standard cost$)$

$48,000$

Materials Quantity Variance

$1,200$

Direct Materials Inventory $($at actual cost$)$

$41,000$

Materials Price Variance

$8,200$

To record the cost of direct materials used in June.

$\backslash$table$[[$Work in Process Inventory $($at standard cost$),81,000],[\backslash$table$[[$Work in Process Inventory $($at standard cost$)],[$Labor Rate Variance. $.............]],950],[\backslash$table$[[$Labor Rate Variance $......],[$Labor Efficiency Variance. $..]],4,500],[\backslash$table$[[$Labor Efficiency Variance $...................................],[$Direct Labor $($atual cost$)]],86,450],[,],[,25,000],[$Work in Process Inventory $($at standard cost$).,2,000],[$Overhead Spending Variance.,$5,000],[$Overhead Volume Variance $..........,22,000]]$