Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 30

Boss Company's standard cost accounting system recorded this information from its December operations.

Required
1. Prepare December 31 journal entries to record the company's costs and variances for the month. (Do not prepare the journal entry to close the variances.)
Analysis Component
2. Identify the variances that would attract the attention of a manager who uses management by exception. Explain what action(s) the manager should consider.