Reference no: EM132929059
Question - Perry Products Inc. which makes school desks, uses a standard cost system and provides the following data concerning its operations during the last month (October):
Description Units or Units of output 750 units
Standard quantity of materials per desk 16 sq. m.
Standard price per sq. m. materials $20.00/sq. m.
Actual purchase cost of materials $259,120
Actual quantity of materials purchased 12,640 sq. m.
Actual quantity of materials used in production 11,850 sq. m.
Std. hrs allowed per unit for labour 3 hrs. per desk
Std. wage rate $30.00
Actual wage rate $31.00
Actual direct labour hours used 2,325 hrs.
Required -
Prepare fully labeled variance diagrams for Direct Materials and Direct Labour including the specific dollar amounts for all variances.
Prepare journal entries only for materials and labour.