Business, 24.03.2021 16:40 muncyemily
Direct materials and manufacturing labor variances, journal entries. Collegiate Corn Hole is a small business that Zach Morris developed while in college. He began building wooden corn hole game sets for friends, hand painted with college colors and logos. As demand grew, he hired some workers and began to manage the operation. Collegiate Corn Hole maintains two departments: construction and painting. In the construction department, the games require wood and labor. Collegiate Corn Hole has some employees who have been with the company for a very long time and others who are new and inexperienced.
Sophomore Corn Hole uses standard costing for the game sets. Kenny expects that a typical set should take 4 hours of labor in the construction department, and the standard wage rate is $10.00 per hour. An average set uses 22 square feet of wood, allowing fora certain amount of scrap. Because of the nature of the wOod, workers must work around the flaws in the materials. Kenny shops around for good deals and expects to pay $4.30 per square foot. Kenny does not store inventory, and buys the wood as he receives an order. For the month of September, Kenny's workers produced 75 corn hole sets using 308 hours and 1,750 square feet of wood. Kenny bought wood for $7,200 (and used the entire quantity), and incurred labor costs of $2,945.
Zach does not store inventory, and buys the wood as he receives an order. For the month of September, Zach's workers produced 60 corn hole sets using 250 hours and 1,500 square feet of wood. Zach bought wood for $7,350 (and used the entire quantity) and incurred labor costs of $2,375.
Required:
a. For the construction department, calculate the price and efficiency variances for the wood and the price and efficiency variances for direct manufacturing labor.
b. Record the journal entries for the variances incurred.
c. Discuss logical explanations for the combination of variances that the construction department of Collegiate Corn Hole experienced.
Answers: 3
Another question on Business
Business, 22.06.2019 06:30
Select all that apply. what do opponents of minimum wage believe are the results of minimum wage? increases personal income results in job shortages causes unemployment raises prices of goods
Answers: 1
Business, 22.06.2019 12:30
Amap from a trade development commission or chamber of commerce can be more useful than google maps for identifying
Answers: 1
Business, 22.06.2019 19:00
Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.
Answers: 2
Business, 22.06.2019 21:00
On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?
Answers: 3
You know the right answer?
Direct materials and manufacturing labor variances, journal entries. Collegiate Corn Hole is a small...
Questions
