8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance. Labor rate variance Labor efficiency variance Controllable variance... Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: 900 units Finished goods. Work in process. Raw materials. 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.

8. Disposition of variances. Atlas Corporation uses standard costing in accounting for the manufacturing costs of its only product, Xerco. Variances are allocated to the cost of goods sold and ending inventories. The following information was extracted from the corporation's books for January: Debit Credit $1,500 600 Materials purchase price variance Materials quantity variance. Labor rate variance Labor efficiency variance Controllable variance... Volume variance... 250 290 $300 120 The following inventories were on hand on January 31: 900 units Finished goods. Work in process. Raw materials. 1,200 units none The work in process inventory was 100% complete as to materials and 50% complete as to direct labor and factory overhead. During January, 1,500 units were sold. Required: Allocate the variances. Round distribution percentages to the nearest percent and allocations to the nearest dollar.

Name: 8. Disposition of variances. Atlas Corporation uses standard costing
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Description: 8. Disposition of variances. Atlas Corporation uses standard costing in accounting for themanufacturing costs of its only product, Xerco. Variances are allocated to the cost of goodssold and ending inventories. The following information was extracte

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Requirement: Compute for the following variances1. Fixed Spending Variance2. Variable Spending Variance3. Efficiency Variance4. Controllable Variance5. Volume Variance6. Spending Variance 7. Total Variance
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Amada Company's standard cost system reports this information from its December operations. Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet 1 Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) direct labor, and (c) overhead. Ignore the journal entry to close the variances. 2 3 Record direct materials costs and variances. Date December 31 Note: Enter debits before credits. $ 100,000 General Journal 3,000 U 500 F 90,000 7,000 F 1,200 U 375,000 12,000 U 9,000 U Debit Credit >
1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance
Instruction: a. Compute for the factory overhead variance b. Make the journal entries that relate to the factory overhead 19F.
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