Explorer Manufacturing has the following standard cost sheet for one of its products: Total Direct...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Explorer Manufacturing has the following standard cost sheet for one of its products: Total Direct Materials 5 pounds at $2 per pound $10 Direct Labor 2 hours at $25 per hour $50 VMOH 2 hours at $5 per hour $10 FMOH 2 hours at $20 per hour $40 $110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a capacity of 400 units of the product. Explorer has the following actual operating results for the year just completed: Units manufactured 360 Direct materials purchased and used 1,800 pounds $19,800 Direct labor incurred 750 hours $20,250 VMOH incurred $4,800 FMOH incurred $15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Debit (total) Credit (total) WIP Inventory $153,000 $134,640 FG Inventory $134,640 $111,690 COGS $111,690
Required: Calculate ALL relevant overhead variances and prepare the necessary related journal entries.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
