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Question - Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (10 pounds at $2.70 per pound) $27.00
Direct labor (6 hours at $12.00 per hour) $72.00
During the month of April, the company manufactures 320 units and incurs the following actual costs.
Direct materials purchased and used (1,700 pounds) $4,760
Direct labor (1,940 hours) $22,892
Required - Compute the total, price, and quantity variances for materials and labor.
Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial. Prepare the necessary journal entry to close the overhead account if the balance is considered material.
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