Superior produced 1,000 units of finished product in 2018. Direct materials cost variance $115 U Direct materials efficiency variance 840 F Direct labor cost variance 700 F Direct labor efficiency variance 6,450 F Variable overhead cost variance 1,000 U Variable overhead efficiency variance 1,000 F Fixed overhead cost variance 700 U Fixed overhead volume variance 2,600 F Standards: 3 yards of cloth per unit at $1.20 per yard 2 direct labor hours per unit at $10.75 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,300 yards of cloth were purchased at $1.25 per yard Employees worked 1,400 hours and were paid $10.25 per hour Actual variable overhead was $1,600 Actual fixed overhead was $6,500 Record the overhead allocated to Work-in-Process Inventory. Date Accounts and Explanation Debit Credit
Superior produced 1,000 units of finished product in 2018. Direct materials cost variance $115 U Direct materials efficiency variance 840 F Direct labor cost variance 700 F Direct labor efficiency variance 6,450 F Variable overhead cost variance 1,000 U Variable overhead efficiency variance 1,000 F Fixed overhead cost variance 700 U Fixed overhead volume variance 2,600 F Standards: 3 yards of cloth per unit at $1.20 per yard 2 direct labor hours per unit at $10.75 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,300 yards of cloth were purchased at $1.25 per yard Employees worked 1,400 hours and were paid $10.25 per hour Actual variable overhead was $1,600 Actual fixed overhead was $6,500 Record the overhead allocated to Work-in-Process Inventory. Date Accounts and Explanation Debit Credit
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Superior produced 1,000 units of finished product in 2018.
|
Direct materials cost variance
|
$115
|
U
|
|
Direct materials efficiency variance
|
840
|
F
|
|
Direct labor cost variance
|
700
|
F
|
|
Direct labor efficiency variance
|
6,450
|
F
|
|
Variable
|
1,000
|
U
|
|
Variable overhead efficiency variance
|
1,000
|
F
|
|
Fixed overhead cost variance
|
700
|
U
|
|
Fixed overhead volume variance
|
2,600
|
F
|
Standards:
3 yards of cloth per unit at $1.20 per yard
2 direct labor hours per unit at $10.75 per hour
Overhead allocated at $5.00 per direct labor hour
Actual:
2,300 yards of cloth were purchased at $1.25 per yard
Employees worked 1,400 hours and were paid $10.25 per hour
Actual variable overhead was $1,600
Actual fixed overhead was $6,500
Record the overhead allocated to Work-in-Process Inventory.
|
Date
|
Accounts and Explanation
|
Debit
|
Credit
|
||
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,