More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat: Direct Materials Direct Labor Manufacturing Overhead Standard Quantity 2 Pounds (Aluminum) 1/2 hour 1/2 hour Standard Price $4.00 $10.00 $6.00 Unit Standard Cost $8.00 $5.00 $3.00 In 2019, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor. Actual results for 2019 are presented below: 1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900. 2. Direct materials used were 220,000 pounds of aluminum. 3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked. 4. Total manufacturing overhead was $352,000. 5. Actual production was 114,000 baseball bats. Compute the following variances and identify whether the variance is favorable or unfavorable? 1. Direct Materials Price $ 2. Direct Materials Quantity $ 3. Direct Labor Price ✓ Unfavorable Favorable Not Applicable $ 4. Direct Labor Quantity $ 5. Total Overhead Variance Prepare the journal entries to record the transactions and events in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. (To record purchase of materials)
More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat: Direct Materials Direct Labor Manufacturing Overhead Standard Quantity 2 Pounds (Aluminum) 1/2 hour 1/2 hour Standard Price $4.00 $10.00 $6.00 Unit Standard Cost $8.00 $5.00 $3.00 In 2019, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor. Actual results for 2019 are presented below: 1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900. 2. Direct materials used were 220,000 pounds of aluminum. 3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked. 4. Total manufacturing overhead was $352,000. 5. Actual production was 114,000 baseball bats. Compute the following variances and identify whether the variance is favorable or unfavorable? 1. Direct Materials Price $ 2. Direct Materials Quantity $ 3. Direct Labor Price ✓ Unfavorable Favorable Not Applicable $ 4. Direct Labor Quantity $ 5. Total Overhead Variance Prepare the journal entries to record the transactions and events in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. (To record purchase of materials)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the
following per unit standard costs for 2019 for each baseball bat:
Direct Materials
Direct Labor
Manufacturing
Overhead
Standard Quantity
2 Pounds (Aluminum)
1/2 hour
1/2 hour
Standard Price
$4.00
$10.00
$6.00
Unit Standard Cost
$8.00
$5.00
$3.00
In 2019, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor.
Actual results for 2019 are presented below:
1.
Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900.
2.
Direct materials used were 220,000 pounds of aluminum.
3.
Direct labor costs were $575,260 for 58,700 direct labor hours actually worked.
4.
Total manufacturing overhead was $352,000.
5.
Actual production was 114,000 baseball bats.
Compute the following variances and identify whether the variance is favorable or unfavorable?
1.
Direct Materials Price
$
2.
Direct Materials Quantity
$
3.
Direct Labor Price
✓
Unfavorable
Favorable
Not Applicable
$
4.
Direct Labor Quantity
$
5.
Total Overhead Variance
Prepare the journal entries to record the transactions and events in 2019. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
1.
2.
(To record purchase of materials)
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