ComprehensivePiedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets @ $4 $16 Copper 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 Fixed overhead 5 machine hours @ $4 20 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) a. Determine the following variances for November. Note: Do not use negative signs with your answers. a. Total material price variance $Answer 1 Answer 2b. Total material usage (quantity) variance $Answer 3 Answer 4c. Labor rate variance $Answer 5 Answer 6d. Labor efficiency variance $Answer 7 Answer 8e. Variable overhead spending variance $Answer 9 Answer 10f. Variable overhead efficiency variance $Answer 11 Answer 12g. Fixed overhead spending variance $Answer 13 Answer 14h. Volume variance $Answer 15 Answer 16i. Budget variance $Answer 17 Answer 18 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. Account Debit Credit To record aluminum price variance To record copper price variance To record aluminum quantity variance To record copper quantity variance To record labor variances To record variable overhead variances To record fixed overhead variances

ComprehensivePiedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets @ $4 $16 Copper 3 sheets @ $8 24 Direct labor 7 hours @ $16 112 Variable overhead 5 machine hours @ $6 30 Fixed overhead 5 machine hours @ $4 20 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) a. Determine the following variances for November. Note: Do not use negative signs with your answers. a. Total material price variance $Answer 1 Answer 2b. Total material usage (quantity) variance $Answer 3 Answer 4c. Labor rate variance $Answer 5 Answer 6d. Labor efficiency variance $Answer 7 Answer 8e. Variable overhead spending variance $Answer 9 Answer 10f. Variable overhead efficiency variance $Answer 11 Answer 12g. Fixed overhead spending variance $Answer 13 Answer 14h. Volume variance $Answer 15 Answer 16i. Budget variance $Answer 17 Answer 18 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. Account Debit Credit To record aluminum price variance To record copper price variance To record aluminum quantity variance To record copper quantity variance To record labor variances To record variable overhead variances To record fixed overhead variances

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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Comprehensive
Piedmont Manufacturing produces metal products with the following standard quantity and cost information:

Direct Material
Aluminum	4	sheets @ $4	$16
Copper	3	sheets @ $8	24
Direct labor	7	hours @ $16	112
Variable overhead	5	machine hours @ $6	30
Fixed overhead	5	machine hours @ $4	20

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)

a. Determine the following variances for November.

Note: Do not use negative signs with your answers.

a. Total material price variance $Answer 1 Answer 2
b. Total material usage (quantity) variance $Answer 3 Answer 4
c. Labor rate variance $Answer 5 Answer 6
d. Labor efficiency variance $Answer 7 Answer 8
e. Variable overhead spending variance $Answer 9 Answer 10
f. Variable overhead efficiency variance $Answer 11 Answer 12
g. Fixed overhead spending variance $Answer 13 Answer 14
h. Volume variance $Answer 15 Answer 16
i. Budget variance $Answer 17 Answer 18

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.

Account	Debit	Credit



To record aluminum price variance



To record copper price variance



To record aluminum quantity variance



To record copper quantity variance




To record labor variances




To record variable overhead variances




To record fixed overhead variances

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