- X Data table More info Direct Materials (0.2 lbs @ $0.25 per lb) $ 0.05 a. There were no beginning or ending inventory balances. All expenditures were on account. Direct Labor (3 minutes @ $0.14 per minute) 0.42 b. Actual production and sales were 62,500 coffee mugs. nation.) Manufacturing Overhead: c. Actual direct materials usage was 11,000 lbs. at an actual cost of $0.17 per lb. Variable (3 minutes @ $0.06 per minute) 0.18 d. Actual direct labor usage was 197,000 minutes at a total cost of $33,490. Fixed (3 minutes @ $0.13 per minute) 0.39 0.57 . Actual overhead cost was $10,835 variable and $29,965 fixed. F. Selling and administrative costs were $130,000. 1.04 Total Cost per Coffee Mug $ Print Done int Done er each variance is - X Requirements FOH cost FOH volu 1. Compute the cost and efficiency variances for direct materials and direct Requirem labor. lize the movement of all production costs from Work-in-Process Inventory. Journalize 2. Journalize the purchase and usage of direct materials and the assignment of anation on the last line of the journal entry table.) Begin by jo direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and Date efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated Jul. manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. Middleton intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise?Middleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 69,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.)Middleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul. Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul.Middleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul. Requirement 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round any interim calculations to four decimal places, X.XXXX, and your final answers to the nearest whole dolllar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is . . an .. . anMiddleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 69,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance FOH cost variance FOH volume variance 11 Requirement 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the entry to show the actual manufacturing overhead costs incurred. Date Accounts and Explanation Debit Credit Jul. Journalize the applied manufacturing overhead. NextMiddleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Journalize the applied manufacturing overhead. Date Accounts and Explanation Debit Credit Jul. Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Credit Jul. NextMiddleton manufactures coffee mugs that it sells to other companies for customizing with their Actual cost and production information for July 2024 follows: own logos. Middleton prepares flexible budgets and uses a standard cost system to control i (Click the icon to view actual cost and production information.) manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Read the requirements. (Click the icon to view the cost data.) Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Jul. Requirement 5. Middleton intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Hiring more-skilled, higher-paid labor led to direct labor cost variance. Given the direct labor efficiency variance, it appear that these more-skilled workers performed efficiently. The overall net effect is V, thus management's decision was