Reference no: EM132558434
Lido Company's standard and actual costs for the most recent period, are given below:
Lido uses the following manufacturing standards Per Unit:
Direct Material: 2metres @$1.56 per metre
Direct Labour : 1.25Hours @ $16.00per hour
MOH: Variable: 1.25Hours @ $3.45 per DLH
Fixed: 1.25 Hrs @$10.00 based on capacity to produce 1,000 units
During the most recent period Lido provided the following details:
Produced 950 Units
Raw Material:
- 2,500 metres of material were purchased at $1.45 per metre, and 2,000 metres were used
Direct Labour:
- 1,420 hours of labour were assigned to produce 950 units. Direct labour actual hourly rate was $16.65
Actual Variable Manufacturing Overhead - MOH:
- $3.70 per labour hour.Direct Labour Hours- DLH as the COST DRIVER for overhead application.
Actual Fixed Overhead amounted to $11,500 for the period
QUESTIONS
Problem I: Provide Journal Entries for:
1. The purchase and use of raw materials
2. Direct Labour