PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products. Standard camping tent Deluxe backpacking tent Standard Quantity 27 yards 5 yards Standard Price $ 12.50 per yard $ 8.80 per yard During March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual March production of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased 1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabric during March in the production of 190 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March. 2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 22BEA: Control Limits During the last 6 weeks, the actual costs of materials for Brennen Company were as...

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7) Bear Mountain Sporting Goods has the following information from producing a specified quantity of camping kits: LO: 5 Actual fixed-MOH costs incurred on account $2,400 $2,500 Master Budget fixed-MOH costs Applied fixed-MOH costs Fixed-MOH Price Variance $2,400 $100 Favorable Fixed-MOH Volume Variance $100 Unfavorable Prepare the journal entries to record the actual fixed-MOH costs incurred, application of fixed-MOH to production, and to recognize the Fixed-MOH Variances.
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DM & DL variances; journal entriesIn July, Zinger Corp. purchased 52,000 gallons of Numerol for $158,600 to use in the production of product #43MR7. During July, Zinger Corp. manufactured 10,140 units of product #43MR7. The following information is available about standard and actual quantities and costs: Standard for One UnitDirect material 4.8 gallons @ $3 per gallonDirect labor 20 minutes @ $9 per DLHActual Usage for JulyDirect material 47,710 gallonsDirect labor 3,354 DLHs @ $9.02 per DLH A. Prepare the journal entries for the material and labor variances.Note: Round amounts to the nearest whole dollar.Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To record material price variance Answer Answer Answer Answer Answer Answer Answer Answer Answer To record material quantity variance…
Variance Computations and Explanations Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of assembly at $13 per hour. The following data were recorded for October, the first month of operations: Fabric purchased Fabric used in production of 1,700 tents Direct labor used 9,000 yards x $4.80 per yard 7,000 yards 3,600 hours x $13.50 per hour (a) Compute all standard cost variances for materials and labor. Materials price variance (usage basis) $ Materials price variance (purchase basis) $ Materials quantity variance $ Labor rate variance $ Labor efficiency variance $ ♦ ♦ ◆ ◆ (b) Which of the following is the most likely explanation for a favorable materials price variance and an unfavorable materials quantity variance? OQuantity discounts and the use of highly skilled production employees. OLast minute purchases of raw materials from…
Exercise 16-48 (Algo) (Appendix used in requirement [c]) Comprehensive Cost Variance Analysis (LO 16-5, 6, 7) Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 93,000 tires for $36 each. Budgeted production was 97,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.35 hours at $15.00 5.25 Variable production overhead: 0.10 machine-hours at $15 per hour 1.50 Total variable costs $ 14.75 Fixed production overhead costs: Monthly budget $1,458,000 Fixed overhead is applied at the rate of $16.00 per tire. Actual production costs: Direct materials purchased and used: 397,000 pounds at $1.70 $ 674,900 Direct labor: 28,500 hours at $15.30 436,050 Variable overhead: 11,000 machine-hours at $15.70 per hour 172,700 Fixed overhead 1,459,000…
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