140. DT Co. produces picture frames. It takes 3 hours of direct labor to produce a frame. DT's standard labor cost is $11 per hour. During March, DT produced 4,000 frames and used 12,400 hours at a total cost of $133,920.
a. What is DT's labor rate variance for March?
b. What is DT’s direct labor efficiency variance for March?
c. Record the labor costs and the variances for DT.
141. In producing 700 units of Product CBA last period, Cobalt Company used 5,000 pounds of Material H, costing $34,250. The company has established the standard of using 7.2 pounds of Material H per unit of CBA, at a price of $7.50 per pound.
a. Calculate the materials price and quantity variances associated with producing the 700 units, and indicate whether they are favorable or unfavorable.
b. Record the entry for the material used and related variances for Cobalt.
c. Assume these variances are immaterial and prepare the entry to close them out at the end of the year.