Assignment
Maple Products, Ltd., manufactures a super-strong hockey stick. The standard cost of one hockey stick is:
|
|
Standard Quantity
or Hours
|
Standard Price
or Rate
|
Standard
Cost
|
|
Direct materials
|
? feet
|
$
|
3.00
|
per foot
|
$
|
?
|
|
Direct labor
|
2 hours
|
|
?
|
per hour
|
|
?
|
|
Variable manufacturing overhead
|
? hours
|
$
|
1.30
|
per hour
|
|
?
|
|
Total standard cost
|
|
|
|
|
$
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27.00
|
Last year, 8,000 hockey sticks were produced and sold. Selected cost data relating to last year's operations follow:
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|
Dr.
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Cr.
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|
Accounts payable-direct materials purchased (60,000 feet)
|
|
174,000
|
|
Wages payable (? hours)
|
|
79,200*
|
|
Work in process-direct materials
|
115,200
|
|
|
Labor rate variance
|
|
3,300
|
|
Variable overhead efficiency variance
|
650
|
|
The following additional information is available for last year's operations:
a. No materials were on hand at the start of last year. Some of the materials purchased during the year were still on hand in the warehouse at the end of the year.
b. The variable manufacturing overhead rate is based on direct labor-hours. Total actual variable manufacturing overhead cost for last year was $19,800.
c. Actual direct materials usage for last year exceeded the standard by 0.2 feet per stick.
Required:
1. For direct materials:
a. Compute the price and quantity variances for last year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
b. Prepare journal entries to record all activities relating to direct materials for last year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. For direct labor:
a. Using the rate variance given above, calculate the standard hourly wage rate and compute the efficiency variance for last year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
b. Prepare a journal entry to record activity relating to direct labor for last year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. Compute the variable overhead rate and efficiency variances for last year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
5. Prepare a standard cost card for one hockey stick.(Round your answers to 2 decimal places.)