Record the overhead costs, including the unfavorable volume and unfavorable controllable variances.same way as the chart aboveRecord the direct labor costs, including the favorable efficiency variance and unfavorable rate variance. same way as the chart above Boss Company's standard cost accounting system recorded this information from its December operations.$ 114,0003,900Standard direct materials costDirect materials quantity variance (unfavorable)Direct materials price variance (favorable)Actual direct labor costDirect labor efficiency variance (favorable)Direct labor rate variance (unfavorable)Actual overhead costVolume variance (unfavorable)Controllable variance (unfavorable)75085,8006,9501,300376,00011,5008,950Required:1. Prepare December 31 journal entries to record the company's costs and variances for the month. (Do not prepare the joclose the variances.)View transaction listJournal entry worksheet3< Prev8 of 8NextLere to searchF9F10F11F5F6F7F8F1F2F3F4&23783WTYFJKLVBN MZ.C* COHI团44 13Record the materials costs, including the unfavorable quantity and favorableprice variances.Note: Enter debits before credits.,DateGeneral JournalDebitCreditDec 31cesRecord entryClear entryView general journal< Prev8 of 8Nexttion= here to searchF9F10F11F1F2F3F4F5F6F7F823$4234578.TYAFGH J KZ.CVN MVL.团2.

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Description: Record the overhead costs, including the unfavorable volume and unfavorable controllable variances.same way as the chart aboveRecord the direct labor costs, including the favorable efficiency variance and unfavorable rate variance. same way as the ch

Materials price variance is the difference between the actual price paid for materials to budgeted…

Business

Accounting

Record the materials costs, including the unfavorable quantity and favorable price variances. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

Record the materials costs, including the unfavorable quantity and favorable price variances. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

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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Concept explainers

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.

Topic Video

Question

Record the overhead costs, including the unfavorable volume and unfavorable controllable variances.

same way as the chart above

Record the direct labor costs, including the favorable efficiency variance and unfavorable rate variance.

same way as the chart above

Boss Company's standard cost accounting system recorded this information from its December operations.
$ 114,000
3,900
Standard direct materials cost
Direct materials quantity variance (unfavorable)
Direct materials price variance (favorable)
Actual direct labor cost
Direct labor efficiency variance (favorable)
Direct labor rate variance (unfavorable)
Actual overhead cost
Volume variance (unfavorable)
Controllable variance (unfavorable)
750
85,800
6,950
1,300
376,000
11,500
8,950
Required:
1. Prepare December 31 journal entries to record the company's costs and variances for the month. (Do not prepare the jo
close the variances.)
View transaction list
Journal entry worksheet
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Record the materials costs, including the unfavorable quantity and favorable
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Debit
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Record entry
Clear entry
View general journal
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Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
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