168.Beluga Corp. has developed standard costs based on a predicted operating level of 352,000 units of production, which is 80% of capacity. Variable overhead is $281,600 at this level of activity, or $0.80 per unit. Fixed overhead is $440,000. The standard costs per unit are:
Direct materials (0.5 lbs. @ $1/lb.)$0.50per unit
Direct labor (1 hour @ $6/hour)$6.00per unit
Overhead (1 hour @ $2.05/hour)$2.05per unit
Beluga actually produced 330,000 units at 75% of capacity and actual costs for the period were:
Direct materials (162,000 lbs.)$170,100
Direct labor (329,500 hours)$2,042,900
Fixed overhead$438,000
Variable overhead$262,000
Calculate the following variances and indicate whether each variance is favorable or unfavorable:
(1) Direct labor efficiency variance: $__________________
(2) Direct materials price variance: $__________________
(3) Controllable overhead variance: $__________________
169.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.
Actual costs and quantities:
Direct materials used37,000 feet @ $6.20 per foot
Direct labor hours used50,660 hours
Direct labor rate per hour$16.50
25,000 units were produced during the period.
Standard costs and quantities per unit:
Direct materials1.5 ft. @ $6.10 per ft.
Direct labor2 hours @ $17 per hour
a.
170.The following information comes from the flexible budget performance report of Jackal Corp. for the current period. 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.
Direct materials actual cost$237,400
Direct materials standard cost$238,750
Materials price variance$11,700U
Materials quantity variance$13,050F