Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9) Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $93.00 pe raft. This includes 8 kilograms of direct material at a standard cost of $6.00 per kilogram, and 5 hours of direct labor at $9.00 per hour. The following data pertain to November: Work-in-process inventory on November 1: none. Work-in-process inventory on November 30: 880 units (75 percent complete as to labor, material is issued at the beginning of processing). • Units completed: 6,600 units. • Purchases of materials: 51,000 kilograms for $303,450. • Total actual labor costs: $327,520. • Actual hours of labor: 35,600 hours. Direct-material quantity variance: $2,400 unfavorable. Book Print ferences Required: 1. Compute the following amounts. a. Direct-labor rate variance for November. b. Direct-labor efficiency variance for November. c. Actual kilograms of material used in the production process during November. d. Actual price paid per kilogram nf direct matorial in
Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9) Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $93.00 pe raft. This includes 8 kilograms of direct material at a standard cost of $6.00 per kilogram, and 5 hours of direct labor at $9.00 per hour. The following data pertain to November: Work-in-process inventory on November 1: none. Work-in-process inventory on November 30: 880 units (75 percent complete as to labor, material is issued at the beginning of processing). • Units completed: 6,600 units. • Purchases of materials: 51,000 kilograms for $303,450. • Total actual labor costs: $327,520. • Actual hours of labor: 35,600 hours. Direct-material quantity variance: $2,400 unfavorable. Book Print ferences Required: 1. Compute the following amounts. a. Direct-labor rate variance for November. b. Direct-labor efficiency variance for November. c. Actual kilograms of material used in the production process during November. d. Actual price paid per kilogram nf direct matorial in
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9)
Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $93.00 per
raft. This includes 8 kilograms of direct material at a standard cost of $6.00 per kilogram, and 5 hours of direct labor at
$9.00 per hour. The following data pertain to November:
• Work-in-process inventory on November 1: none.
• Work-in-process inventory on November 30: 880 units (75 percent complete as to labor; material is issued at the
beginning of processing).
• Units completed: 6,600 units.
• Purchases of materials: 51,000 kilograms for $303,450.
• Total actual labor costs: $327,520.
• Actual hours of labor: 35,600 hours.
• Direct-material quantity variance: $2,400 unfavorable.
Book
Print
Чеrences
Required:
1. Compute the following amounts.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November.
C. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of
November.
2. Prepare journal entries to record the following:
a. Purchase of raw material and rate variance.
Addina dienat matarial n Warte in Deccon
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Transcribed Image Text:Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9)
Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $93.00 per
raft. This includes 8 kilograms of direct material at a standard cost of $6.00 per kilogram, and 5 hours of direct labor at
$9.00 per hour. The following data pertain to November:
• Work-in-process inventory on November 1: none.
• Work-in-process inventory on November 30: 880 units (75 percent complete as to labor; material is issued at the
beginning of processing).
• Units completed: 6,600 units.
• Purchases of materials: 51,000 kilograms for $303,450.
• Total actual labor costs: $327,520.
• Actual hours of labor: 35,600 hours.
• Direct-material quantity variance: $2,400 unfavorable.
Book
Print
Чеrences
Required:
1. Compute the following amounts.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November.
C. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of
November.
2. Prepare journal entries to record the following:
a. Purchase of raw material and rate variance.
Addina dienat matarial n Warte in Deccon
Mc
Graw
Hill
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![Check my wa
Required:
1. Compute the following amounts.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November.
c. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of
November.
pok
2. Prepare journal entries to record the following:
a. Purchase of raw material and rate variance.
b. Adding direct material to Work-in-Process Inventory and efficiency variance.
C. Adding direct labor to Work-in-Process Inventory and labor variances.
Tint
erences
Complete this question by entering your answers in the tabs below.
Req 1A
Reg 1B
Req 10
Req 1D
Req 1E
Req 1F
Req 2
Compute the direct-labor rate variance for November. (Indicate the effect of each variance by selecting"Favorable" or
"Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round intermediate calculations to 2 decimal
places.)
Direct-labor rate variance
< Reg 1A
Req 1B >
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Transcribed Image Text:Check my wa
Required:
1. Compute the following amounts.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November.
c. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of
November.
pok
2. Prepare journal entries to record the following:
a. Purchase of raw material and rate variance.
b. Adding direct material to Work-in-Process Inventory and efficiency variance.
C. Adding direct labor to Work-in-Process Inventory and labor variances.
Tint
erences
Complete this question by entering your answers in the tabs below.
Req 1A
Reg 1B
Req 10
Req 1D
Req 1E
Req 1F
Req 2
Compute the direct-labor rate variance for November. (Indicate the effect of each variance by selecting"Favorable" or
"Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round intermediate calculations to 2 decimal
places.)
Direct-labor rate variance
< Reg 1A
Req 1B >
Mc
Graw
Hill
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