Exam 16: Journal Entries to Record Variance

Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below: The raw material was purchased on account. The Materials Price Variance for March would be recorded as a:

Cafferty Corporation has provided the following data concerning its direct labor costs for March: The Labor Rate Variance for March would be recorded as a:

The journal entry below: indicates that:

Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below: The raw material was purchased on account. The credits to the Raw Materials account for March would total:

When the actual direct labor-hours exceeds the standard direct labor-hours allowed for the actual output of the period,the journal entry would include:

The direct labor standards at Hebden Corporation are $10.30 per direct labor-hour (DLH)and 3.4 DLHs per unit of output.In December,7,800 units were produced,the actual wage rate was $9.90 per DLH,and the actual hours were 21,340 DLHs. Required: Prepare the journal entry to record the incurrence of direct labor costs.

Marusarz Corporation has provided the following data concerning its most important raw material,compound F55M: When recording the purchase of materials,Raw Materials would be:

Compound K72R is used to make Munuz Corporation's major product.The standard cost of compound K72R is $43.90 per ounce and the standard quantity is 1.4 ounces per unit of output.In the most recent month,120 ounces of the compound were used to make 100 units of the output.When recording the use of materials in production,Raw Materials would be:

Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below: The raw material was purchased on account. The debits to the Raw Materials account for March would total:

If the actual rate per direct labor-hour is less than the standard rate per direct labor-hour,then the journal entry to record the Labor rate variance would be a credit.

Ungvarsky Corporation has provided the following data concerning its most important raw material,compound J38F: The raw material was purchased on account. Required: a.Record the purchase of the raw material in a journal entry. b.Record the use of the raw material in production in a journal entry.

Results of operations for the Anderson Corporation indicated that the actual direct labor rate for May was $9.75 while the standard rate was $10.00.The general ledger entry to record the incurrence of direct labor cost would include:

Compound C65Z is used by Sinkey Corporation to make one of its products.The standard cost of compound C65Z is $21.10 per ounce and the standard quantity is 2.0 ounces per unit of output.Data concerning the compound in the most recent month appear below: The raw material was purchased on account. Required: a.Record the purchase of the raw material in a journal entry. b.Record the use of the raw material in production in a journal entry.

When the actual amount of a raw material used in production is greater than the standard amount allowed for the actual output,the journal entry would include:

During the month of May,Marian Manufacturing Corporation purchased materials that had a total standard cost of $37,000.The Materials Price Variance on these materials was $6,000 favorable.What summary journal entry would Domino make to record this purchase and variance for May?

A favorable materials quantity variance would appear as a credit in a journal entry.

Albert Manufacturing Company manufactures a single product.The standard cost of one unit of this product is: During the month of October,6,000 units were produced.Selected cost data relating to the month's production follow: There was no beginning inventory of raw materials.The variable overhead rate is based on direct labor-hours. Required: a.For direct materials,compute the price and quantity variances for the month,and prepare journal entries to record activity for the month. b.For direct labor,compute the rate and efficiency variances for the month,and prepare a journal entry to record labor activity for the month. c.For variable overhead,compute the rate variance for the month.

An unfavorable materials quantity variance is recorded as a debit in the Materials Quantity Variance account.

Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below: The raw material was purchased on account. The Materials Quantity Variance for March would be recorded as a:

Pinkney Corporation has provided the following data concerning its direct labor costs for November: Required: Prepare the journal entry to record the incurrence of direct labor costs.