Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question:87 The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. The normal monthly capacity is 1,100 direct labor hours. Direct material: Standard (3 lb. @ $2/lb.) Actual (6,200 lb. @ $2.20/lb.) Standard Units Costs Total Actual Costs $6 $ 13,640 Direct labor: Standard (0.5 hr. @ $14/hr.) $ 7 Actual (980 hrs. @ $13.70/hr.) $ 13,426 Variable overhead: Standard (0.5 hr. @ $4/hr.) $2 Actual $ 4,200 Total $ 15 $31,266 Assume that the 6,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. Goldman Company reported the following manufacturing overhead variances. Variable overhead cost variance $430 F Variable overhead efficiency variance $514 U Fixed overhead cost variance $670 U Fixed overhead volume variance $630 F 1. Record the journal entry to adjust Manufacturing Overhead. 2. Was Manufacturing Overhead overallocated or under-allocated?

Question:87 The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. The normal monthly capacity is 1,100 direct labor hours. Direct material: Standard (3 lb. @ $2/lb.) Actual (6,200 lb. @ $2.20/lb.) Standard Units Costs Total Actual Costs $6 $ 13,640 Direct labor: Standard (0.5 hr. @ $14/hr.) $ 7 Actual (980 hrs. @ $13.70/hr.) $ 13,426 Variable overhead: Standard (0.5 hr. @ $4/hr.) $2 Actual $ 4,200 Total $ 15 $31,266 Assume that the 6,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. Goldman Company reported the following manufacturing overhead variances. Variable overhead cost variance $430 F Variable overhead efficiency variance $514 U Fixed overhead cost variance $670 U Fixed overhead volume variance $630 F 1. Record the journal entry to adjust Manufacturing Overhead. 2. Was Manufacturing Overhead overallocated or under-allocated?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

solve the problem

Question:87 The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. The normal monthly capacity is 1,100 direct labor hours. Direct material: Standard (3 lb. @ $2/lb.) Actual (6,200 lb. @ $2.20/lb.) Standard Units Costs Total Actual Costs $6 $ 13,640 Direct labor: Standard (0.5 hr. @ $14/hr.) $ 7 Actual (980 hrs. @ $13.70/hr.) $ 13,426 Variable overhead: Standard (0.5 hr. @ $4/hr.) $2 Actual $ 4,200 Total $ 15 $31,266 Assume that the 6,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. Goldman Company reported the following manufacturing overhead variances. Variable overhead cost variance $430 F Variable overhead efficiency variance $514 U Fixed overhead cost variance $670 U Fixed overhead volume variance $630 F 1. Record the journal entry to adjust Manufacturing Overhead. 2. Was Manufacturing Overhead overallocated or under-allocated?
Transcribed Image Text:Question:87 The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. The normal monthly capacity is 1,100 direct labor hours. Direct material: Standard (3 lb. @ $2/lb.) Actual (6,200 lb. @ $2.20/lb.) Standard Units Costs Total Actual Costs $6 $ 13,640 Direct labor: Standard (0.5 hr. @ $14/hr.) $ 7 Actual (980 hrs. @ $13.70/hr.) $ 13,426 Variable overhead: Standard (0.5 hr. @ $4/hr.) $2 Actual $ 4,200 Total $ 15 $31,266 Assume that the 6,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. Goldman Company reported the following manufacturing overhead variances. Variable overhead cost variance $430 F Variable overhead efficiency variance $514 U Fixed overhead cost variance $670 U Fixed overhead volume variance $630 F 1. Record the journal entry to adjust Manufacturing Overhead. 2. Was Manufacturing Overhead overallocated or under-allocated?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS