please full calculation and explanations
Answer :
Part (1)
(1) Standard cost card - one micro computer case - container Inc. | |||||
Direct material | 1.5 | Kg | $1.20 | Per Kg | $1.80 |
Direct Labor | 0.5 | DLHs at | $15.00 | Per DLH | $7.50 |
Variable overhead | 0.2 | Machine hour at | $6.00 | Per MH | $1.20 |
Fixed overhead | 0.2 | Machine hour at | $33.75 | Per MH | $6.75 |
Standard cost per unit | $17.25 | ||||
Fixed overhead per machine hour = 337500/(50000*0.20)=$33.75 |
(2) |
DM Price Variance= ( Std Price - Actual Price) X Actual Quantity |
( 1.20-1.21)X 103125= $1031.25 Unfavorable |
DM Efficiency Variance= ( Std Qty- Actual Qty) X price |
(( 62500X1.5)-91900)X1.20= $2220 Favorable |
D labor Rate Variance= ( Std Rate - Actual Rate) X Actual Hour |
(15-14.70)X 30300= $9090 favorable |
DL Efficiency Variance= ( Std Hour- Actual Hour) X Std Rate |
(( 62500X0.5)-30300)X15= $14250 Favorable |
(3) Journal Entries | |||
S.No. | Account Title | Debit | Credit |
1. | Direct material - inventory | $123,750 | |
Direct material price variance | $1,031 | ||
Account payable (103125*1.21) | $124,781 | ||
2. | Direct material used (62500*1.5*1.20) | $1,125,009 | |
Direct material Efficiency variance | $2,220 | ||
Direct material - Inventory (91900*1.20) | $110,280 | ||
3. | Direct labor (62500*0.50*15) | $468,750 | |
Direct labor rate variance | $9,090 | ||
Direct labor efficiency variance | $14,250 | ||
Account payable (30300*14.70) | $445,410 |
please full calculation and explanations Containers, Inc. produced 62.500 and sold 59.000 plastic microcomputer cases at...
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