Exam 24: Journal Entries to Record Variances

Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below: The raw material was purchased on account. -The credits to the Raw Materials account for October would total:

Dolittle Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $0.50 per pound from a supplier at $0.60 per pound would include a:

Mate Corporation's standard wage rate is $11.90 per direct labor-hour (DLH) and according to the standards, each unit of output requires 4.5 DLHs. In May, 2,900 units were produced, the actual wage rate was $11.50 per DLH, and the actual hours were 15,530 DLHs. -The Labor Efficiency Variance for May would be recorded as a:

Compound V11V is used to make Hickenbottom Corporation's major product.The standard cost of V11V is $21.50 per ounce and the standard quantity is 3.6 ounces per unit of output.In the most recent month,1,600 ounces of the raw material were purchased at a cost of $21.00 per ounce.When recording the purchase of materials,Raw Materials would be:

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:

The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour.Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060. 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.

Compound Y23Z is used by Mcfadin Corporation to make one of its products.The standard cost of compound Y23Z is $38.70 per ounce and the standard quantity is 4.6 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.

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: • Purchased 17,000 pounds of material at a total cost of $190,000. • Used 15,000 pounds of material to produce 2,400 Kitts. • Used 1,900 hours of direct labor time at a total cost of $38,000. -Odle Company purchased material on account.The entry to record the purchase of materials will include a:

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

Which of the following entries would correctly record charging direct labor costs to Work in Process,given an unfavorable labor efficiency variance and a favorable labor rate variance?

The following standards have been established for a raw material used in the production of product O99: 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. )

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 debit.

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: • Purchased 17,000 pounds of material at a total cost of $190,000. • Used 15,000 pounds of material to produce 2,400 Kitts. • Used 1,900 hours of direct labor time at a total cost of $38,000. -To record the use of direct materials in production,the general ledger would include what kind of entry to the Materials Quantity Variance Account?

The Lahn Company produces and sells a single product.Standards have been established for the product as follows: Direct materials: 5 pounds $3.50 per pound = $17.50 Direct labor: 3 hours $5.50 per hour = $16.50 Actual cost and usage figures for the past month follow: Required: Prepare journal entries to record: a.The purchase of raw materials. b.The usage of raw materials in production. c.The incurrence of direct labor cost.

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

A favorable labor rate variance is recorded as a debit in the Labor Rate Variance account.

The standards for product J42 call for 3.6 feet of a raw material that costs $14.00 per feet.Last month,5,500 feet of the raw material were purchased for $76,175.The actual output of the month was 1,260 units of product J42.A total of 4,800 feet 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. )

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

Gotay Corporation's standard wage rate is $12.00 per direct labor-hour (DLH)and according to the standards,each unit of output requires 5.8 DLHs.In December,4,900 units were produced,the actual wage rate was $11.00 per DLH,and the actual hours were 27,870 DLHs.The Labor Rate Variance for December would be recorded as a:

The following direct labor standards have been established for product H91D: The following data pertain to the most recent month's operations during which 3,860 units of product H91D 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.