Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product: Direct material-5 pieces@$2.00 $ \$ 10.00 $ Direct labor (variable)-1 sph@$3.00 300 Manufacturing overhead: Fixed-1 sph@$3.00 $ \$ 3.00 $ Variable-1 spha @$2.00 $ 2.00 $ 5.00 Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:

Material price $ 0

Material usage 4,000

Labor rate 800

Labor efficiency 300

Overhead volume 6,000

Overhead budget (2 variance analysis) 1,000

Required: Determine the following:(a)fixed overhead budgeted for a year; (b)the number of units completed during January assuming no work in process at January 31; (c)debits made to the Work in Process account for direct material,direct labor,and manufacturing overhead; (d)number of pieces of material issued during January; (e)total of direct labor payroll recorded for January; (f)total of manufacturing overhead recorded in January.

Question

Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product:
Direct material-5 pieces@$2.00

\$ 10.00

Direct labor (variable)-1 sph@$3.00 300

Manufacturing overhead:
Fixed-1 sph@$3.00

\$ 3.00

Variable-1 spha @$2.00

2.00

5.00
Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:

Material price	$ 0
Material usage	4,000
Labor rate	800
Labor efficiency	300
Overhead volume	6,000
Overhead budget (2 variance analysis)	1,000

Required: Determine the following:(a)fixed overhead budgeted for a year; (b)the number of units completed during January assuming no work in process at January 31; (c)debits made to the Work in Process account for direct material,direct labor,and manufacturing overhead; (d)number of pieces of material issued during January; (e)total of direct labor payroll recorded for January; (f)total of manufacturing overhead recorded in January.

Quizplus · Accepted Answer

The Answer of Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product: Direct material-5 pieces@$2.00 $ \$ 10.00 $ Direct labor (variable)-1 sph@$3.00 300 Manufacturing overhead: Fixed-1 sph@$3.00 $ \$ 3.00 $ Variable-1 spha @$2.00 $ 2.00 $ 5.00 Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:

Material price	$ 0
Material usage	4,000
Labor rate	800
Labor efficiency	300
Overhead volume	6,000
Overhead budget (2 variance analysis)	1,000

Required: Determine the following:(a)fixed overhead budgeted for a year; (b)the number of units completed during January assuming no work in process at January 31; (c)debits made to the Work in Process account for direct material,direct labor,and manufacturing overhead; (d)number of pieces of material issued during January; (e)total of direct labor payroll recorded for January; (f)total of manufacturing overhead recorded in January.

Mansfield Company Began Business Early in January Using a Standard $10.00 \$ 10.00 $10.00

Mansfield Company Began Business Early in January Using a Standard $\$ 10.00$