This continues the Davis Consulting, Inc. situation
from Problem P22-56 of Chapter 22.
P23-36 Calculating materials and labor variances
and preparing journal entries
P23-36 This continues the Davis Consulting, Inc. situation
from Problem P22-56 of Chapter 22. Assume Davus gas created a standard cost
card for each job, Standard direct materials include14 software packages a cost
of $900 per package. Standard direct labor costs per job include 90 hours at
$120 per hour. Davis plans on completing 12 jobs during March 2013. Actual direct materials costs for March
included 90 software packages at a total cost of $81,450. Actual direct labor
costs included 100 hours per job at an average rate of $125 per hour. Davis
completed all 12 jobs in March.
Requirements
1. Calculate direct materials cost and efficiency
variances.
2. Calculate direct labor cost and efficiency
variances.
3. Prepare journal entries to record the use of
both materials and labor for March for the company.
TUTORIAL PREVIEW
Req. 1
|
Direct
materials:
|
||||||
|
Actual price
($81,450 / 90)
|
$905
|
per pk.
|
||||
|
Standard
price
|
|
$900
|
per pk.
|
|||
|
Actual
quantity
|
|
|
90
|
packages
|
||
|
Standard
quantity (14 pkgs × 12 jobs)
|
168
|
packages
|
||||
File name: P23-36 This continues .xls
File type: .xls PRICE: $12
