Answer Happy

Comprehensive Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets @ $4 $16 3 sheets @ SS Copper Direct labor 24 112 7 hours @ $16 Variable overhead S machine hours @ $6 30 Fored overhead S machine hours@$4 20 Overhead rates were based on normal monthly capacity of 10,800 machine hours. During November, the company produced only 1530 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 7.200 sheets purchased @ $3.S0 Used 6,300 sheets Copper 5.400 sheets purchased @ $8.40 Used 4,680 sheets Direct Labor Regular time 9.360 hours@ $16 (pre-contract settlement) Regular time 1620 hours @ $17 (post-contract settlement) Variable Overhead $41.940 (based on 7.515 machine hours) Fixed Overhead $33.930 (based on 7.515 machine hours) a. Determine the following variances for November. Note: Do not use negative signs with your answers. 9:42 AM
Note: Do not use negative signs with your answers. a. Total material price variance $ 720 b. Total material usage (quantity) variance $720 c. Labor rate variance $1,620 d. Labor efficiency variance $ 4,320 e. Variable overhead spending variance $ 3,150 f. Variable overhead efficiency variance $ 810 g. Fixed overhead spending variance $ 9,270 h. Volume variance $12,600 i. Budget variance $ 9,270 b TI Account Aluminum Material Inventory Accounts Payable Aluminum Material Price Variance U F U U S Debit E 28,800 F 0 0 F LL Neither For U = x U F H b. Prepare the journal entries to record the standard costing information for November. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Credit → 0 27 360 1,440 €13 > S
To record aluminum price variance Copper Material Inventory Copper Material Price Variance Accounts Payable To record copper price variance Aluminum Material Quantity Variance Work in Process Inventory Aluminum Material Inventory To record aluminum quantity variance Copper Material Quantity Variance Work in Process Inventory Copper Material Inventory To record copper quantity variance Work in Process Inventory Labor Rate Variance Labor Efficiency Variance Wages Payable To record labor variances Work in Process Inventory Variable OH Efficiency Variance Variable OH Control Variable OH Spending Variance To record variable overhead variances Fixed OH Spending Variance Work in Process Inventory Fixed OH Control Volume Variance To record fived overhead variance 42 FI ITE [12 4 4 25 S XX 43,200✔ 2,160 0 720 24,480 720 36,720 0 172,800 x 1,620 45,900 810 X 9,270 X 30,600 0 0✔ 45,360 0 07 25,200 10 37,440 V 4,320 x 170,100 X 43,560 x 3,150 27,270 x 12,600 x