Compute the direct labor rate and labor efficiency variances

Assignment Help Auditing

Reference no: EM13169021

Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet:

Direct materials (5lbs. @ $2.60) $13.00

Direct Labor (0.75 hr @ $18.00) 13.50

Fixed overhead (0.75 hr @ $4.00) 3.00

Variable overhead (0.75 hr @ $3.00) 2.25

Standard cost per unit $31.75

Algers computers is overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows:

a. Units produced: 53,000

b. Direct materials purchased: 274,000 pounds at $2.50 per pound

c. Direct materials used: 270,300 pounds

d. Direct labor: 40,100 hours at $17.95 per hour

e. Fixed overhead: $161,700

f. Variable overhead: $122,000

Required:

1. Compute price and usage variances for direct materials.

2. Compute the direct labor rate and labor efficiency variances.

3. Compute the fixed overhead spending and volume variances. Intercept the volume variance.

4. Compute the variable overhead spending and efficiency varainces.

5. Prepare journal entries for the following:

a. The purchase of direct materials

b. The issurance of direct materials to production (Work in Process)

c. The addition of direct labor to Work in Process

d. The addition of overhead to Work in Process

e. The incurrence of actual overhead costs

f. Closing out of variances to Cost of Goods Sold

Reference no: EM13169021

Questions Cloud

Calculate the partial pressure of each gas in the container : Express the pressure values numerically in atmospheres, separated by commas. Enter the partial pressure of methane first, then ethane, then propane.

Allocated fixed costs are assigned based on relative sales : Furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 13%. Allocated fixed costs are assigned based on relative sales.

What is the total combined mass of carbon dioxide and water : An automobile gasoline tank holds 43 of gasoline. When the gasoline burns, 151 of oxygen are consumed and carbon dioxide and water are produced. What is the total combined mass of carbon dioxide and water that is produced?

What is the of the resulting hydrochloric acid solution : 0.90 of hydrogen chloride is dissolved in water to make 5.5 of solution. What is the of the resulting hydrochloric acid solution?

Compute the direct labor rate and labor efficiency variances : Compute price and usage variances for direct materials, compute the direct labor rate and labor efficiency variances and compute the fixed overhead spending and volume variances. Intercept the volume variance.

Which indicator is more accurate phenopthalein or methyl : which indicator is more accurate phenopthalein or methyl orange? why

Depict the mechanism for the ammonolysis of benzoyl chloride : draw the mechanism for the ammonolysis of benzoyl chloride

Write the balanced net ionic equation reaction : Write the balanced net ionic equation for the following dissolution reaction: Zn(OH)2 in aqueous NaOH

Explain the acid-catalyzed hydrolysis of ethyl acetate : showing electron flow with arrows, for the acid-catalyzed hydrolysis of ethyl acetate to acetic acid and ethanol- the reverse of a Fischer esterification reaction.

User Account

All Pages