Problem 8 Material and Labor Variance Journal Entries Clyette Corporation uses a standard cost system and...

Transcribed Image Text:

Problem 8 Material and Labor Variance Journal Entries Clyette Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: Direct labor 2.5 meters @ P14 per meter 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence. Problem 9: Material and Labor Variance Mr. Ong purchase 60,000 lbs. of chemical X for P210,000. During May 2020 Mr. Ong, manufactured 10,000 units of the product. The following information is available for the month of May: Standard for One unit Actual Usage Direct materials Direct Labor 5.8 gallons @P3 per gallon 30 min. @P9 per DLH 57,000 gallons Required: 4,800 DLHS @P9.10 per DLH a. Compute the materials price and quantity variance b. Compute the labor rate and efficiency variance Problem 10: Factory Overhead Variance The following are the standard cost data of Paul Corporation for the month of January 2020: a. Each unit of chair requires 0.50 hours of labor time to produce. b. Variable FOH is applied at the rate of P10 per labor hour. Fixed FOH is applied at the rate of P5 per labor hour, based on expected annual capacity of 25,000 hours. Actual Production data: Number of chairs produced Actual number of labor hours Variable FOH cost incurred Fixed FOH cost incurred Required: Compute the following: 1. Calculate the variances using 1 way approach 2. Calculate the variances using 2 way approaches 3. Calculate the variances using 3 way approaches 4. Calculate the variances using 4 way approaches 52,000 units 26,500 hours P270,000 P140,000 Problem 7: Material and Labor Variance Journal Entries Nelissa Corporation makes a chair with the following standard costs for direct materials and direct labor: Direct materials: Direct labor: 2 meters @P3.25 per meter 0.40 hours @P12 per hour P6.50 P4.80 During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows: Direct materials purchased Direct materials used in the production Direct labor 60,000 meters @ P3.15 per meter 52,500 meters 9,875 hours @ P12.20 per hour The standard cost variances for direct materials and direct labor are as follows: Labor Efficiency Variance Labor Rate Variance Material Price Variance Material Quantity Variance 124 hours @ P12 per hour 9,875 hours @ P0.20 per hour 60,000 meters @ PO. 10 per meter 2,500 meters @ P3.25 per meter 1,500 F 1,975 U 6,000 F 8,125 U Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence. Problem 14: MIX AND YIELD VARIANCE Production of each unit of 001 requires 8 lbs. of B at a cost of P9 per lb. and 4 lbs. of X at P11.20 per lb. However, for production of 1,000 units of 001 10,000. lbs. were used, 75% of which was for material B at a cost of P8 per lb. for B and P9 per lb. for X. Required: Compute the material price, mix, and yield and quantity variance. Problem 15: MIX AND YIELD VARIANCE Marie Corp has material standards inputs for one unit is as follows Material X Y Z Total Quantity in lbs. 400 400 200 1,000 lbs. Standard Price per lb. 40.00 80.00 30.00 20 units of finished product have been actually produced during the period which the actual quantities of material used and the prices paid are as follows: Material X Y Z Total Quantity used in lb. Price 10,000 38.00 8,500 84.00 4,500 32.50 23,000 lbs. Required: Compute the price, mix and yield variances. Problem 8 Material and Labor Variance Journal Entries Clyette Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: Direct labor 2.5 meters @ P14 per meter 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence. Problem 9: Material and Labor Variance Mr. Ong purchase 60,000 lbs. of chemical X for P210,000. During May 2020 Mr. Ong, manufactured 10,000 units of the product. The following information is available for the month of May: Standard for One unit Actual Usage Direct materials Direct Labor 5.8 gallons @P3 per gallon 30 min. @P9 per DLH 57,000 gallons Required: 4,800 DLHS @P9.10 per DLH a. Compute the materials price and quantity variance b. Compute the labor rate and efficiency variance Problem 10: Factory Overhead Variance The following are the standard cost data of Paul Corporation for the month of January 2020: a. Each unit of chair requires 0.50 hours of labor time to produce. b. Variable FOH is applied at the rate of P10 per labor hour. Fixed FOH is applied at the rate of P5 per labor hour, based on expected annual capacity of 25,000 hours. Actual Production data: Number of chairs produced Actual number of labor hours Variable FOH cost incurred Fixed FOH cost incurred Required: Compute the following: 1. Calculate the variances using 1 way approach 2. Calculate the variances using 2 way approaches 3. Calculate the variances using 3 way approaches 4. Calculate the variances using 4 way approaches 52,000 units 26,500 hours P270,000 P140,000 Problem 7: Material and Labor Variance Journal Entries Nelissa Corporation makes a chair with the following standard costs for direct materials and direct labor: Direct materials: Direct labor: 2 meters @P3.25 per meter 0.40 hours @P12 per hour P6.50 P4.80 During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows: Direct materials purchased Direct materials used in the production Direct labor 60,000 meters @ P3.15 per meter 52,500 meters 9,875 hours @ P12.20 per hour The standard cost variances for direct materials and direct labor are as follows: Labor Efficiency Variance Labor Rate Variance Material Price Variance Material Quantity Variance 124 hours @ P12 per hour 9,875 hours @ P0.20 per hour 60,000 meters @ PO. 10 per meter 2,500 meters @ P3.25 per meter 1,500 F 1,975 U 6,000 F 8,125 U Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence. Problem 14: MIX AND YIELD VARIANCE Production of each unit of 001 requires 8 lbs. of B at a cost of P9 per lb. and 4 lbs. of X at P11.20 per lb. However, for production of 1,000 units of 001 10,000. lbs. were used, 75% of which was for material B at a cost of P8 per lb. for B and P9 per lb. for X. Required: Compute the material price, mix, and yield and quantity variance. Problem 15: MIX AND YIELD VARIANCE Marie Corp has material standards inputs for one unit is as follows Material X Y Z Total Quantity in lbs. 400 400 200 1,000 lbs. Standard Price per lb. 40.00 80.00 30.00 20 units of finished product have been actually produced during the period which the actual quantities of material used and the prices paid are as follows: Material X Y Z Total Quantity used in lb. Price 10,000 38.00 8,500 84.00 4,500 32.50 23,000 lbs. Required: Compute the price, mix and yield variances.