Posted: May 3rd, 2016
The following information is available in the year just finished:
AJack Partnership manufactured 10,000 jackhammers during the year.
The total purchases of steel in the year at a cost of $8.75 per pound were 45,000 pounds.
All of the material was used to manufacture the 10,000 jackhammers.
There was no beginning or ending inventory.
The material was purchased on January 15, 20XX
AJack Partnership incurred 21,000 direct labor hours at $19.50 per hour.
During the year, one production order was issued on February 15 20XX, number 789, for 10,000 jackhammers.
Actual variable overhead was $210,000.
Actual fixed overhead was $405,000.
1. Compute the material price variance for Jan 15, 20XX.
2. Provide the accounting entry for the price variance.
1. Compute the labor rate variance.
2. Compute the labor efficiency variance.
3. Provide the accounting entry for the labor rate and efficiency variances.
1. Compute the variable overhead rate variance.
2. Compute the variable overhead efficiency variance.
3. Provide the accounting entry for the overhead rate and efficiency variances.
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