Exam 16: Journal Entries to Record Variance

If the actual quantity of materials used is less than the standard quantity of materials allowed for the actual output,then the journal entry to record the Direct Materials Quantity Variance would be a debit.

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Quantity Variance for August would be recorded as a:

When the actual wage rate paid to direct labor workers exceeds the standard wage rate,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 use of direct materials in production last period would include:

Gainer Corporation's standard wage rate is $11.70 per direct labor-hour (DLH)and according to the standards,each unit of output requires 3.9 DLHs.In February,7,800 units were produced,the actual wage rate was $12.50 per DLH,and the actual hours were 29,940 DLHs.The Labor Rate Variance for February would be recorded as a:

Cafferty Corporation has provided the following data concerning its direct labor costs for March: The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:

Liukko Corporation's standard wage rate is $14.90 per direct labor-hour (DLH)and according to the standards,each unit of output requires 2.8 DLHs.In June,1,800 units were produced,the actual wage rate was $15.80 per DLH,and the actual hours were 5,110 DLHs.The Labor Efficiency Variance for June would be recorded as a:

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

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Price Variance for August would be recorded as a:

The standards for product F28 call for 2.7 pounds of a raw material that costs $16.50 per pound.Last month,4,100 pounds of the raw material were purchased for $70,520.The actual output of the month was 1,300 units of product F28.A total of 3,500 pounds of the raw material were used to produce this output. 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. )

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

Gramajo Corporation's standard wage rate is $10.10 per direct labor-hour (DLH)and according to the standards,each unit of output requires 3.4 DLHs.In February,2,400 units were produced,the actual wage rate was $9.40 per DLH,and the actual hours were 7,920 DLHs.In the journal entry to record the incurrence of direct labor costs in February,the Work in Process entry would consist of a:

An unfavorable labor rate variance is recorded as a debit in the Labor Rate Variance account.

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

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. In the journal entry to record the incurrence of direct labor costs in December,the Work in Process entry would consist of a:

Data concerning the direct labor costs for March of Boler Corporation appear below: The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process: