Problem 24.3A Computing and Journalizing Cost Variances (LO24-3, LO24-4) American Hardwood Products uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the company's cost accountant Direct Manufacturing Direct terials 41,25057,750 Overhead 61,628 terials Labor Actual costs incurred Standard costs Materials price variance (favorable) Materials quantity variance (unfavorable) Labor rate variance (favorable) Labor efficiency variance (unfavorable) Overhead spending variance (unfavorable) Overhead volume variance (unfavorable) 48,000 $ 41,258 42,800 es 1,5 750 1,620 2,250 The total standard cost per unit of finished product is $15. During the current month, 5.000 units were completed and transferred to the finished goods inventory and 4,000 units were sold. The inventory of work in process at the end of the month consists of 500 units that are 60 percent complete. There was no inventory in process at the beginning of the month. Required a. Prepare journal entries to record all variances and the costs incurred (at standard) in the Work in Process account as separate compound entries for (1) direct materials. (2) direct labor and (3) manufacturing overhead. b. Prepare journal entries to record (1) the transfer of units finished to the Finished Goods Inventory account and (2) the Cost of Goods Sold (at standard) for the month. c. Assuming that the company operated at 80 percent of its normal capacity during the current month, what is the amount of the budgeted fixed manufacturing overhead per month? Journal entry worksheet 2 Record materials used. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record direct labor cost. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet Record manufacturing overhead assigned to production, and to record overhead variances. Note: Enter debits before credits. Debit Credit Transaction General Journal Record entry Clear entry View general journal Journal entry worksheet 2 Record entry to transfer cost of units completed to finished goods inventory Note: Enter debits before credits Debit Credit ra Record entry Clear entry View general journal View transaction list Journal entry worksheet Record cost of units sold Note: Enter debsits before credt General Journal Debit Credit 2 Record entry Clear entry View general journal the budgeted fixed manufacturing overhead per month? Fixed overhead per month