Exam 16: Journal Entries to Record Variance

If the actual direct labor-hours used is less than the standard direct labor-hours allowed for the actual output,then the journal entry to record the Labor Efficiency Variance would be a credit.

The standards for product Q58W specify 8.4 direct labor-hours per unit at $14.00 per direct labor-hour.Last month 400 units of product Q58W were produced using 2,800 direct labor-hours at a total direct labor wage cost of $41,020. Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month? c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

A favorable labor efficiency variance is recorded as a debit in the Labor Efficiency Variance account.

Slife Corporation has provided the following data concerning its most important raw material,compound G81N: When recording the use of materials in production,Raw Materials would be:

The following direct labor standards have been established for product N30A: The following data pertain to the most recent month's operations during which 400 units of product N30A were made: Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month? c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

If the actual purchase price for materials exceeds the standard purchase price,then the journal entry to record the Direct Materials Price Variance would be a credit.

A favorable labor efficiency variance would result in a debit balance in the labor efficiency variance account.

Enwall Corporation's standard wage rate is $11.20 per direct labor-hour (DLH)and according to the standards,each unit of output requires 2.9 DLHs.In December,5,900 units were produced,the actual wage rate was $10.20 per DLH,and the actual hours were 14,150 DLHs. The Labor Rate Variance for December would be recorded as a:

Widman,Inc.makes and sells only one product and uses standard costing.The standard cost sheet for one unit of product includes the following: • Direct materials: 5 grams at $0.35 per gram • Direct labor: 1 hour at $8 per hour Last period the company had the following results: • 5,000 grams of direct materials purchased at $0.40 per gram • 4,000 grams of direct materials used in production • 900 units of product were made • 850 hours of direct labor were used at $8.50 per hour The journal entry to record the purchase of direct materials last period would include:

If the actual rate per direct labor-hour exceeds the standard rate per direct labor-hour,then the journal entry to record the Labor Rate Variance would be a debit.

An unfavorable labor efficiency variance is recorded as a debit in the Labor Efficiency Variance account.

Miolen Corporation has provided the following data concerning its direct labor costs for June: The Labor Efficiency Variance for June would be recorded as a:

An unfavorable materials price variance is recorded as a debit in the Materials Price Variance account.

When the actual price to purchase a raw material on account exceeds its standard price,the journal entry would include:

Widman,Inc.makes and sells only one product and uses standard costing.The standard cost sheet for one unit of product includes the following: • Direct materials: 5 grams at $0.35 per gram • Direct labor: 1 hour at $8 per hour Last period the company had the following results: • 5,000 grams of direct materials purchased at $0.40 per gram • 4,000 grams of direct materials used in production • 900 units of product were made • 850 hours of direct labor were used at $8.50 per hour The journal entry to record the incurrence of direct labor cost last period would include:

Compound B73G is used to make Vasconcellos Corporation's major product.The standard cost of B73G is $27.60 per ounce and the standard quantity is 8.6 ounces per unit of output.In the most recent month,3,200 ounces of the raw material were purchased at a cost of $26.70 per ounce.When recording the purchase of materials,Raw Materials would be:

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The debits to the Raw Materials account for August would total:

The following standards have been established for a raw material used in the production of product G13: The following data pertain to a recent month's operations: Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month? c.Prepare journal entries to record the purchase and use of the raw material during the month.(All raw materials are purchased on account. )

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The credits to the Raw Materials account for August would total:

Enwall Corporation's standard wage rate is $11.20 per direct labor-hour (DLH)and according to the standards,each unit of output requires 2.9 DLHs.In December,5,900 units were produced,the actual wage rate was $10.20 per DLH,and the actual hours were 14,150 DLHs. The Labor Efficiency Variance for December would be recorded as a: