Albert Manufacturing Company Manufactures a Single Product

Essay

Albert Manufacturing Company manufactures a single product. The standard cost of one unit of this product is: During the month of October, 6,000 units were produced. Selected cost data relating to the month's production follow: There was no beginning inventory of raw materials. The variable overhead rate is based on direct labor-hours.
Required:
a. For direct materials, compute the price and quantity variances for the month, and prepare journal entries to record activity for the month.
b. For direct labor, compute the rate and efficiency variances for the month, and prepare a journal entry to record labor activity for the month.
c. For variable overhead, compute the rate variance for the month.