Question 3 A shoe company had the following journal entries recorded for the end of June. Materials Control 300,000 10,000 290,000 Direct Materials Price Variance Accounts Payable Control Work-in-Process Control 120,000 8,000 Direct Materials Efficiency Variance Materials Control 128,000 Standard cost for direct labor per pair of shoes: 1 hour at a standard price of $100 each. The company produced 8,500 shoes in June with 8,470 hours and incurred total direct labor costs of $832,000. a) Read each of the following statement and state whether each statement is correct or not. Correct each incorrect statement. (i) There is an unfavorable direct material price variance of $10,000. (ii) There is an unfavorable direct material efficiency variance of $8,000. (iii) The company had to pay $300,000 for materials purchased. (iv) The company used more direct materials in production than the standard required amount.

Question 3 A shoe company had the following journal entries recorded for the end of June. Materials Control 300,000 10,000 290,000 Direct Materials Price Variance Accounts Payable Control Work-in-Process Control 120,000 8,000 Direct Materials Efficiency Variance Materials Control 128,000 Standard cost for direct labor per pair of shoes: 1 hour at a standard price of $100 each. The company produced 8,500 shoes in June with 8,470 hours and incurred total direct labor costs of $832,000. a) Read each of the following statement and state whether each statement is correct or not. Correct each incorrect statement. (i) There is an unfavorable direct material price variance of $10,000. (ii) There is an unfavorable direct material efficiency variance of $8,000. (iii) The company had to pay $300,000 for materials purchased. (iv) The company used more direct materials in production than the standard required amount.

Name: Question 3A shoe company had the following journal entries recorded f
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Description: Question 3A shoe company had the following journal entries recorded for the end of June.Materials Control300,00010,000290,000Direct Materials Price VarianceAccounts Payable ControlWork-in-Process Control120,000Direct Materials Efficiency Variance8,0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 5,500 hours. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost $18,700 10,340 8,690 $9,610 24,660 7,530 $37,730 41,800 $79,530 Total factory overhead cost During May, the department operated at 5,800 standard hours. The factory overhead costs incurred were indirect factory wages, $19,920; power and light, $10,710; indirect materials, $9,300; supervisory salaries, $9,610; depreciation of plant and equipment, $24,660; and insurance and property taxes, $7,530. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be…
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