47. Cafferty Corporation has provided the following data concerning its direct labor costs for
March:
Standard wage rate $12.80 per DLH
Standard hours 1.3 DLHs per unit
Actual wage rate $12.50 per DLH
Actual hours 2,850 DLHs
Actual output 2,000 units
The Labor Efficiency Variance for March would be recorded as a:
8-40
48. Albert Manufacturing Company manufactures a single product. The standard cost of one
unit of this product is:
Direct materials: 6 feet × $1.50 per foot $9.00
Direct labor: 1 hour × $6.75 per hour 6.75
Variable overhead: 1 hour × $4.50 per hour 4.50
Total standard variable cost per unit $20.25
During the month of October, 6,000 units were produced. Selected cost data relating to the
month’s production follow:
Material purchased: 60,000 feet × $1.43 per foot $85,800
Material used in production 38,000 feet
Direct labor: ?__ hours × $?__ per hour $41,925
Variable overhead cost incurred $30,713
Variable overhead efficiency variance $2,250
There was no beginning inventory of raw materials. The variable overhead rate is based on direct
labor-hours.
Required:
a. For direct materials, compute the price and quantity variances for the month, and prepare
journal entries to record activity for the month.
b. For direct labor, compute the rate and efficiency variances for the month, and prepare a
journal entry to record labor activity for the month.
c. For variable overhead, compute the rate variance for the month.
8-42
49. Ungvarsky Corporation has provided the following data concerning its most important raw
material, compound J38F:
Standard cost, per liter $28.80
Standard quantity, liters per unit of output 4.9
Cost of material purchased in April, per liter $29.30
Material purchased in April, liters 1,900
Material used in production in April, liters 1,220
Actual output in April, units 300
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
8-44
50. The standards for product F28 call for 2.7 pounds of a raw material that costs $16.50 per
pound. Last month, 4,100 pounds of the raw material were purchased for $70,520. The actual
output of the month was 1,300 units of product F28. A total of 3,500 pounds of the raw material
were used to produce this output.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month.
(All raw materials are purchased on account.)
8-46
51. The following standards have been established for a raw material used in the production
of product G13:
Standard quantity of the material per unit of output 2.3 liters
Standard price of the material $19.00 per liter
The following data pertain to a recent month’s operations:
Actual material purchased 5,100 liters
Actual cost of material purchased $100,725
Actual material used in production 4,700 liters
Actual output 2,040 units of
product G13
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month.
(All raw materials are purchased on account.)
8-48
52. Compound C65Z is used by Sinkey Corporation to make one of its products. The standard
cost of compound C65Z is $21.10 per ounce and the standard quantity is 2.0 ounces per unit of
output. Data concerning the compound in the most recent month appear below:
Cost of material purchased in January, per ounce $20.10
Material purchased in January, ounces 1,000
Material used in production in January, ounces 380
Actual output in January, units 200
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
8-50
53. Pinkney Corporation has provided the following data concerning its direct labor costs for
November:
Standard wage rate $12.20 per DLH
Standard hours 5.3 DLHs per unit
Actual wage rate $11.20 per DLH
Actual hours 39,720 DLHs
Actual output 7,900 units
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
8-51
54. The direct labor standards at Hebden Corporation are $10.30 per direct labor-hour (DLH)
and 3.4 DLHs per unit of output. In December, 7,800 units were produced, the actual wage rate
was $9.90 per DLH, and the actual hours were 21,340 DLHs.
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
8-53
55. The standards for product Q58W specify 8.4 direct labor-hours per unit at $14.00 per
direct labor-hour. Last month 400 units of product Q58W were produced using 2,800 direct labor-
hours at a total direct labor wage cost of $41,020.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor
variances.
8-55
56. The following direct labor standards have been established for product N30A:
Standard direct labor-hours 3.3 hours per unit of N30A
Standard direct labor wage rate $10.50 per hour
The following data pertain to the most recent month’s operations during which 400 units of
product N30A were made:
Actual direct labor-hours worked 1,100
Actual direct labor wages paid $11,385
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor
variances.
