Bullseye Company manufactures dartboards. Its standard cost information follows: Direct materials (cork board) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($42,800/174,000 units) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard purchased and used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost View transaction list Journal entry worksheet < Standard Quantity 2.50 square feet 1 hour 1 hour A B Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Bullseye. Assume the compa purchases direct materials as needed and does not maintain any ending inventories. Note: Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Standard Price (Rate) $ 2.00 per square feet $ 16.80 per hour $0.78 per hour Record the entry for direct materials costs and variances. 141,400 374,000 $ 770,000 149,400 $ 1,941,600 $ 86,000 $ 64,000 Standard Unit Cost $5.00 16.80 > 0.78 0.39
Bullseye Company manufactures dartboards. Its standard cost information follows: Direct materials (cork board) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($42,800/174,000 units) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard purchased and used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost View transaction list Journal entry worksheet < Standard Quantity 2.50 square feet 1 hour 1 hour A B Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Bullseye. Assume the compa purchases direct materials as needed and does not maintain any ending inventories. Note: Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Standard Price (Rate) $ 2.00 per square feet $ 16.80 per hour $0.78 per hour Record the entry for direct materials costs and variances. 141,400 374,000 $ 770,000 149,400 $ 1,941,600 $ 86,000 $ 64,000 Standard Unit Cost $5.00 16.80 > 0.78 0.39
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:Bullseye Company manufactures dartboards. Its standard cost information follows:
Direct materials (cork board)
Direct labor
Variable manufacturing overhead (based on
direct labor hours)
Fixed manufacturing overhead ($42,800/174,000
units)
Bullseye has the following actual results for the month of September:
Number of units produced and sold
Number of square feet of corkboard purchased and used
Cost of corkboard used
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
View transaction list
Standard Quantity
2.50 square feet
1 hour
Journal entry worksheet
A
1 hour
B
Standard Price (Rate)
$ 2.00 per square feet
$16.80 per hour
$ 0.78 per hour
Record the entry for direct materials costs and variances.
141,400
374,000
$ 770,000
149,400
$ 1,941,600
$ 86,000
$ 64,000
Required:
1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Bullseye. Assume the company
purchases direct materials as needed and does not maintain any ending inventories.
Standard
Unit
Cost
Note: Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.
$ 5.00
16.80
0.78
0.39
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