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Smith manufactures coffee mugs that it sells to other companies for customizing with their own logos. smith prepares flexible budgets and uses a standard cost system to control manufacturing costs. the standard unit cost of a coffee mug is based on static budget volume of 60,000 coffee mugs per month:

core: 0 of 40 pts 3 of 3 (complete HW Score: 609, 60 of 1 -23-28A (similar to) Question Smith cures coffee that sells to other companies for customing with their own Smith prepares exible bags and a standard cont system to control ang costs. The standard Cont of a coffee mug is based on a budget volume of 60,000 coffee mugs per month Sick to view it) Actus ad production information for July 2013 con low cost of prodation information Read Requirement i Compte the cost and acces for det med det Bogin with cont wances Select the required to compute the cost for de mindre andel wachawes verb cu Aly Food and so Form Varance Dec contine Director work 3 of 3 (2 complete) customizing with their own logos. Smith Actual cost and production information for July al manufacturing costs. The standard unit cost (Click the icon to view actual cost and prod mus per month Data Table av $ 0.05 0.42 Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) Fixed (3 minutes @ $0.15 per minute) Total Cost per Coffee Mug $ 0.18 0.45 0.63 $ 1.10 Print Done aids and then click Check Anwar Clor All work 3 of 3 (2 complete) customizing with their own logos. Smith ol manufacturing costs. The standard unit cost mugs per month Actual cost and production information for (Click the icon to view actual cost and More Info a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,700 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb d. Actual direct labor usage was 200,000 minutes at a total cost of $32,000 Actual overhead cost was $11,000 variable and $29,900 fixed f. Selling and administrative costs were $126,000 e. Print Done elds and then click Check Answer Clear All 3 of 3 (2 complete) comizing with their own logos. Smith Actual cost and production information for i Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 4. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Smith intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done inal Clear All

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