Chapter 23, Problem P23.33BPGB

To determine

Variance: Variances are the measures of the performance deviations from the figures which were budgeted. They help the management identify significant areas of differences in the actual and the budgeted performance and to take corrective action on them.

Part (1)

To determine: Cost and efficiency variances with respect to materials and labor.

To determine

Part (2):

To determine: Journal entries to record purchases and assignment of direct materials and direct labor.

To determine

Part (3):

To determine: Variable Overhead costs and efficiency variances, fixed overhead costs and volume variances.

To determine

Part (4):

To determine: Journal entries to record manufacturing overheads.

To determine

Part (5):

To indicate: Comment on labor variance.