Solutions for Davis & Davis, Managerial Accounting, 2nd ed.
T4-8
Exercise T4-8
a. Manufacturing Overhead …………………………………… 52,000
b. Work in Process Inventory
c. Fixed Overhead Spending Variance
Topic Focus 4 – Standard Costing
SOLUTIONS TO PROBLEMS
Problem T4-9
a. Manufacturing Overhead ……………………………….. 1,198,500
Work in Process Inventory
Problem T4-9, continued
e. Manufacturing Overhead …………………………………… 51,500
f. Fixed Overhead Spending Variance ……………………. 1,500
Problem T4-10
c. For the first 8 months of the year, the standard (applied) monthly fixed
Topic Focus 4 – Standard Costing
T4–11
Problem T4-10, continued
for September through December.
Management specifically chooses to produce fewer shirts in January
through August due to demand. All other things equal, this is an
unexpected variances.
Solutions for Davis & Davis, Managerial Accounting, 2nd ed.
T4–12
Problem T4-11
a. Raw Materials Inventory
Work in Process Inventory
Work in Process Inventory
c. Manufacturing Overhead ……………………………….. 740,000
d. Work in Process Inventory
e. Manufacturing Overhead ……………………………….. 540,000
Topic Focus 4 – Standard Costing
T4–13
Problem T4-11, continued
f. Work in Process Inventory
g. Variable Overhead Efficiency Variance
To record variable manufacturing variances
Fixed Overhead Spending Variance
To record fixed overhead variances
h. Direct Materials Price Variance …………………………. 250,000
Variable Overhead Spending Variance ……………….. 12,000