Question

Containers, Inc. produced 62,500 and sold 59,000 plastic microcomputer cases at a selling price of 510.00 each. Manufacturing overhead is allocated on the basis of machine hours. The standard variable costs per computer case were: Quantity 1.5 kg Total Rate Direct Materials Direct Labour Variable Overhead $1.20 per kg $15.00 per hour $6.00 per hour $1.80 0.50 labour hours 7,50 0.20 machine hours 1.20 Information regarding fixed overhead includes the following: Budgeted Fixed Overhead: $337,500 Total Budgeted Direct Machine Hours 50,000 units Denominator Used: Budgeted Production Volume: Standard Machine Hours/Unit: Total Budgeted Machine Hours 0.20 machine hours Data on Actual Costs and Quantities: Direct material purchased 103,125 kg $1.21 per kg Direct material used 91,900 kg $ 14.70 per hour Direct labour incurred 30,300 ho Machine Hours used 12,000 hours Fixed Overhead Costs $340,200 Variable Overhead Costs $81,000 6.75 All inventory accounts had zero beginning balances. All of the work started this period was completed in the period. REQUIRED: Part I Prepare a standard cost card for one microcomputer case. Calculate these variances: DM Price and Efficiency, DL Price (Rate) and Efficiency, Journalize the following transactions: 1. 2. 3. DM purchase, including any related variance(s) DM requisitioned to production, including any related variance(s) Labour costs incurred, including any related variance(s) а. b. c. Part II Calculate these variances: Variable Overhead Spending and Efficiency, and Fixed Overhead Spending and Production Volume Variances Journalize the following transactions: 4. 5. Actual variable overhead costs incurred а. b. Actual fixed overhead costs incurred The allocation of variable overhead to production The allocation of fixed overhead to production C. d. e. The isolation of variable overhead variances f. The isolation of fixed overhead variances 6. Prepare the journal entry to close out all of the variance accounts, assuming that all variances are immediately expensed to Cost of Goods Sold (and not prorated among the inventory accounts)

please full calculation and explanation.

Answer 1

Cot Per 2it 199 Divect Moterial 7 13 la bour 너45410 Dixect g.9 Primecost 556609 Add Production o 81000 to.21 637609 4ixed over heads 5.4너 Add 340200 944 809 15.65 BWDHECT Matevial paice varianote Actual price -std price)Achual auankiy C1.21-1020) 91900 919 (6)pM EFficicoty 4 tual cost standard cost (i) Labout price varia orc 468450 445410 T& 250 0x 0-5X157 [363 00 x 14.70) Deighted Aug sld rate 23340 Total std H-Total Achual Net trs ivs Labaur Efficicory Vavia oie= 31250-30300] 468750 31250 니250 Dixect Material Conkol Ale [10280 Makrial vona cc 919 cscditors To 11199 Dircc labour cokoltlc-D 468750 TO Labou varia e 23340 Cash Ai To 니너5410

Over head Cost varianlc (viariable) Actual oveheds Ovethead Staonh f 81000 45000 C62500 x0 2.x 6 (6000) variable ot) E Pficien cy (12500- 12000 3000 93750 Cost Fixcd OH Variance n2550 OH'S absorb ed- Actual Fxcd oH 3 37500 62500 x27 340200 2700 EF6Cicaly std Hrs for actualActhia Net output Absorb tion X Rate per Hou trs (12 B0 /2000) 337500 2500 13500

Actudd OH's incurred vor. 31000 ledger cookol A1 Geotral ledger Ad Ale B1000 TO vec heads ledqcr conkol Ale 340200 General ledge AlC 3 40200 To e Cost of Goods sold Ale 1000 varia ble B1000 To o H Cost of boods So ld A1C 340200 34020 0 To FixEd AIC 75000 6 000 overhcad Expease varia nce G1000 Overhead Cxpense Conhrol At TO 33 7500 Progres Atc Overh caf ex pense vai ian cc 5ork in 2700 340200 To overhcal experse conto lAlc 4759 Wosk in pao g6 Cas A1C Matexial variancc 919 To vananec Labour 23340 TO Variable oH DY 6000 -DY Hircd 13500
​​​OH-over heads