Indicate the variance account used and whether the account is a debit or credit for each transaction. 1. 2 3. Purchase raw materials on account for $12,200 when the standard cost is $11,600, paying more per pound than expected. Incur direct labor costs of $12,000 when the standard labor cost is $12,500, paying employees less per hour than allowed. Recognize unfavorable total overhead variance. Variance Account Used ✩ Labor Price Variance Labor Quantity Variance Manufacturing Overhead Materials Price Variance Materials Quantity Variance. Overhead Variance Debit or Credit
Indicate the variance account used and whether the account is a debit or credit for each transaction. 1. 2 3. Purchase raw materials on account for $12,200 when the standard cost is $11,600, paying more per pound than expected. Incur direct labor costs of $12,000 when the standard labor cost is $12,500, paying employees less per hour than allowed. Recognize unfavorable total overhead variance. Variance Account Used ✩ Labor Price Variance Labor Quantity Variance Manufacturing Overhead Materials Price Variance Materials Quantity Variance. Overhead Variance Debit or Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Indicate the variance account used and whether the account is a debit or credit for each transaction.
1.
2
3.
Purchase raw materials on account for $12,200 when the standard
cost is $11,600, paying more per pound than expected.
Incur direct labor costs of $12,000 when the standard labor cost is
$12,500, paying employees less per hour than allowed.
Recognize unfavorable total overhead variance.
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Variance Account Used
Labor Price Variance
Labor Quantity Variance
Manufacturing Overhead
Materials Price Variance
Materials Quantity Variance
Overhead Variance
Debit or
Credit
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