During the Current Period, Richeleau Company Produced 1,000 Units of Product

Essay

During the current period, Richeleau Company produced 1,000 units of product. The flexible budget for standard costs for the 1,000 units is:
Direct materials $43,000
Direct labour 67,000
Variable overhead 30,000
Fixed overhead 25,000
Richeleau purchases only the amount of material required for production each period; it does not maintain raw material inventories. Variances for the period are:
Direct materials price $400 U
Direct materials efficiency 500 U
Direct labour price 600 F
Direct labour efficiency 200 U
Variable overhead spending 300 F
Variable overhead efficiency 100 F
Fixed overhead spending 500 F
Fixed overhead production volume 1000 U
Prepare the journal entries necessary to record all variances and then to close them, assuming that they are all immaterial.