The following standard costs per unit, of one product, have been taken from the records of Bahrain Company. Direct materials 5 kgs at $3 per kg Direct labor 2.5 hours at $10 per hour Actual data for last month: Units produced: 12,000 Direct materials used: 35,000 kgs Direct material price: $4 per kg Direct labor hours: 22,000 Direct labor rate per hour: $9 Direct materials purchased: 100,000 kgs Required: (4) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (b) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor. For the toolbar, press ALT F10 (PC) or ALT-FN-F10 (Mac)

The following standard costs per unit, of one product, have been taken from the records of Bahrain Company. Direct materials 5 kgs at $3 per kg Direct labor 2.5 hours at $10 per hour Actual data for last month: Units produced: 12,000 Direct materials used: 35,000 kgs Direct material price: $4 per kg Direct labor hours: 22,000 Direct labor rate per hour: $9 Direct materials purchased: 100,000 kgs Required: (4) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (b) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor. For the toolbar, press ALT F10 (PC) or ALT-FN-F10 (Mac)

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Description: The following standard costs per unit, of one product, have been taken from the records of Bahrain Company.Direct materials 5 kgs at $3 per kgDirect labor2.5 hours at $10 per hourActual data for last month:Units produced: 12,000Direct materials used

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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B3.
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