Essay
Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product:
Direct material-5 pieces@$2.00
Direct labor (variable)-1 sph@$3.00 300
Manufacturing overhead:
Fixed-1 sph@$3.00
Variable-1 spha @$2.00 5.00
Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:
Material price | $ 0 |
Material usage | 4,000 |
Labor rate | 800 |
Labor efficiency | 300 |
Overhead volume | 6,000 |
Overhead budget (2 variance analysis) | 1,000 |
Required: Determine the following:(a)fixed overhead budgeted for a year; (b)the number of units completed during January assuming no work in process at January 31; (c)debits made to the Work in Process account for direct material,direct labor,and manufacturing overhead; (d)number of pieces of material issued during January; (e)total of direct labor payroll recorded for January; (f)total of manufacturing overhead recorded in January.
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