Chapter 24, Problem 8AP

a.

To determine

Calculate the actual quantity of materials purchased and used in production during June.

b.

To determine

Calculate the standard quantity of materials allowed for the productive output achieved during June.

c.

To determine

Calculate the actual average direct labor rate in June.

d.

To determine

Compute the standard direct labor hours allowed for the production output achieved during June.

e.

To determine

Compute the total overhead costs allowed for the production output achieved during June.

f.

To determine

Prepare a journal entry to record the transfer of all work in process to finished goods at the end of June.

g.

To determine

Close all cost variances directly to the Cost of Goods Sold account at the end of June.

h.

To determine

Explain whether Corporation R’s production output during the month of June was more or less than its normal level of output.