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Category > Management Posted 16 Feb 2018 My Price 5.00

Madzinga’s Draperies

23.     LO.2 (DM & DL variances) Madzinga’s Draperies manufactures curtains. Curtain

#4571 requires the  following:

 

Direct material standard           10 square yards at $5 per yard Direct labor standard       5 hours at $10 per hour

During the second quarter, the company purchased 17,000 square yards at a cost of

$83,300 and used 16,500 square yards to produce 1,500 Curtain #4571s. Direct labor totaled 7,600 hours for $79,800.

a.     Compute the material price and usage variances.

b.    Prepare the journal entries for the purchase and use of direct material.

c.     Compute labor rate and labor efficiency variances.

d.    Prepare the journal entry to accrue direct labor cost and record the labor variances for the quarter.

e.     Comment on the above variances. Identify possible causes and relationships among the variances that you computed.

Answers

Maurice Tutor
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Status NEW Posted 16 Feb 2018 06:02 PM My Price 5.00

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