The Following Information Comes from the Records of Barney Co

Essay

The following information comes from the records of Barney Co. for the current period.
a. Compute the direct materials price and quantity variances, direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable.
b. Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.
$$\begin{array} { l | l } \text { Actual costs and quantities: } & \\\hline \text { Direct materials used } \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 37,000 \text { feet @ \$6.20 per foot } \\\hline \text { Direct labor hours used } \ldots \ldots \ldots \ldots \ldots \ldots & 50,660 \text { hours } \\\hline \text { Direct labor rate per hour } \ldots \ldots \ldots \ldots \ldots \ldots & \$ 16.50 \\\hline\end{array}$$ 25,000 units were produced during the period.
Standard costs and quantities per unit:
Direct materials ……………………… 1.5 ft. @ $6.10 per ft.
Direct labor …………………………... 2 hours @ $17 per hour