(Solved) Standard Products Company recognizes variances from standards at the earliest opportunity, and the q

Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of direct materials purchased is equal to the quantity used. The following information is available for the most recent month. Assume the allocation base for fixed overhead costs is the number of units.

   Direct Materials   Direct Labor

Standard quantity/unit   6.00 lbs.   2.5 hrs.
Standard price (SP)/lb. or hr.   $8.10/lb.   $8.00/hr.
Actual quantity (AQ)/unit   6.25 lbs.   2.8 hrs.
Actual price (AP)/lb. or hr.   $8.00/lb.   $7.50/hr
Price variance   $562.50 F   $1,260.00 F
Quantity/Efficiency variance   $1,822.50 U   $2,160.00 U

Static budget volume   800 units
Actual volume   900 units
Actual overhead cost   $11,000
Standard variable overhead cost   $5/unit
Standard fixed overhead cost   $5,600
Overhead flexible budget variance   $900 U
Production volume variance   $700 F

Journalize the direct labor costs incurred and the assignment of direct labor to Work in Process Inventory, including the related variances.

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Standard Products Company recognizes variances from standards at the earliest opportunity, and the q

Managerial Accounting

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