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Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. o. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are Closed to Cost of Goods Sold at the end of the operating period.

Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. o. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are Closed to Cost of Goods Sold at the end of the operating period.

FINANCIAL ACCOUNTING
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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I need help with part b & c please!
The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following Information is available for the last operating month: The plant produced and sold 28,888 fixtures for $72 each. Budgeted production was 30,000 fixtures. Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs. Fixed production overhead costs: Monthly budget $815,600 Fixed overhead is applied at the rate of $30 per fixture. Actual production costs: $ 16.00 4.00 8.00 $28.00
Transcribed Image Text:The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following Information is available for the last operating month: The plant produced and sold 28,888 fixtures for $72 each. Budgeted production was 30,000 fixtures. Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs. Fixed production overhead costs: Monthly budget $815,600 Fixed overhead is applied at the rate of $30 per fixture. Actual production costs: $ 16.00 4.00 8.00 $28.00
Direct materials purchased and used: 106,400 pounds at $4.34 Direct labor: 2,870 hours at $44.00 Variable overhead: 12,000 machine-hours at $19.54 per hour Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. $461,776 126,280 234,480 859,000 c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.
Transcribed Image Text:Direct materials purchased and used: 106,400 pounds at $4.34 Direct labor: 2,870 hours at $44.00 Variable overhead: 12,000 machine-hours at $19.54 per hour Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. $461,776 126,280 234,480 859,000 c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.
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