Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 57

The accountants for Monoglut, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in March:
Instructions
a. Compute the materials price variance and the materials quantity variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to record the cost of direct materials used during. March in the Work in Process account (at standard).
b. Compute the labor rate variance and the labor efficiency variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to record the cost of direct labor used during March in the Work in Process account (at standard).
c. Compute the overhead spending variance and the overhead volume variance, indicating whether each is favorable or unfavorable. Prepare the journal entry to assign overhead cost to production in March.