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Comprehensive Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum Copper 4 sheets @ $4 $16 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 20 Fixed overhead 5 machine hours @ $4 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased @ $3.80 Used 3,500 sheets Copper 3,000 sheets purchased @ $8.40 Used 2,600 sheets Direct Labor Regular time 5,200 hours @ $16 (pre-contract settlement) Regular time 900 hours @ $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)

Comprehensive Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum Copper 4 sheets @ $4 $16 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 20 Fixed overhead 5 machine hours @ $4 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased @ $3.80 Used 3,500 sheets Copper 3,000 sheets purchased @ $8.40 Used 2,600 sheets Direct Labor Regular time 5,200 hours @ $16 (pre-contract settlement) Regular time 900 hours @ $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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b. Prepare the journal entries to record the standard costing information for November.
Note: Record any multiple debits or any multiple credits in alphabetical order by account name
1)To record aluminum price variance

2)To record copper price variance

3)To record aluminum quantity variance

4)To record copper quantity variance

5)To record labor variances

6)To record variable overhead variances

7)To record fixed overhead variance

 

Comprehensive Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum Copper 4 sheets @ $4 $16 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 20 Fixed overhead 5 machine hours @ $4 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased @ $3.80 Used 3,500 sheets Copper 3,000 sheets purchased @ $8.40 Used 2,600 sheets Direct Labor Regular time 5,200 hours @ $16 (pre-contract settlement) Regular time 900 hours @ $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)
Transcribed Image Text:Comprehensive Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum Copper 4 sheets @ $4 $16 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 20 Fixed overhead 5 machine hours @ $4 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased @ $3.80 Used 3,500 sheets Copper 3,000 sheets purchased @ $8.40 Used 2,600 sheets Direct Labor Regular time 5,200 hours @ $16 (pre-contract settlement) Regular time 900 hours @ $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)
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