National Sporting Goods Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2011 for each baseball bat:
In 2011, the company planned to produce 80,000 baseball bats at a level of 40,000 hours of direct labor.
Actual results for 2011 are presented below:
1. Direct materials purchases were 164,000 pounds of aluminum which cost $688,800.
2. Direct materials used were 145,000 pounds of aluminum.
3. Direct labor costs were $379,270 for 39,100 direct labor hours actually worked.
4. Total manufacturing overhead was $235,000.
5. Actual production was 76,000 baseball bats.
Instructions
(a) Compute the following variances:
1. Direct materials price.
2. Direct materials quantity.
3. Direct labor price.
4. Direct labor quantity.
5. Total overhead variance.
(b) Prepare the journal entries to record the transactions and events in 2011.

Question

National Sporting Goods Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2011 for each baseball bat:  
In 2011, the company planned to produce 80,000 baseball bats at a level of 40,000 hours of direct labor.
Actual results for 2011 are presented below:
1. Direct materials purchases were 164,000 pounds of aluminum which cost $688,800.
2. Direct materials used were 145,000 pounds of aluminum.
3. Direct labor costs were $379,270 for 39,100 direct labor hours actually worked.
4. Total manufacturing overhead was $235,000.
5. Actual production was 76,000 baseball bats.
Instructions
(a) Compute the following variances:
1. Direct materials price.
2. Direct materials quantity.
3. Direct labor price.
4. Direct labor quantity.
5. Total overhead variance.
(b) Prepare the journal entries to record the transactions and events in 2011.

Quizplus · Accepted Answer

The Answer of National Sporting Goods Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2011 for each baseball bat:  
In 2011, the company planned to produce 80,000 baseball bats at a level of 40,000 hours of direct labor.
Actual results for 2011 are presented below:
1. Direct materials purchases were 164,000 pounds of aluminum which cost $688,800.
2. Direct materials used were 145,000 pounds of aluminum.
3. Direct labor costs were $379,270 for 39,100 direct labor hours actually worked.
4. Total manufacturing overhead was $235,000.
5. Actual production was 76,000 baseball bats.
Instructions
(a) Compute the following variances:
1. Direct materials price.
2. Direct materials quantity.
3. Direct labor price.
4. Direct labor quantity.
5. Total overhead variance.
(b) Prepare the journal entries to record the transactions and events in 2011.

National Sporting Goods Company Manufactures Aluminum Baseball Bats That It