The Jurcevich Corporation manufactures and sells a single product. A standard cost system is used by the company. The standard factory overhead cost for a unit of product is as follows: The overhead cost per unit was calculated for the year based on a 60,000 unit volume as follows: The charges to the manufacturing department for April are given below for the 5,200 units produced: (a) Assuming Jurcevich uses the two-variance method of analyzing factory overhead, calculate the following variances from standard cost:
(1)
Factory overhead controllable variance
(2)
Factory overhead volume variance
(b) Prepare the journal entry to apply factory overhead to work in process and record the variances.

Question

The Jurcevich Corporation manufactures and sells a single product. A standard cost system is used by the company. The standard factory overhead cost for a unit of product is as follows:  The overhead cost per unit was calculated for the year based on a 60,000 unit volume as follows:  The charges to the manufacturing department for April are given below for the 5,200 units produced:  (a) Assuming Jurcevich uses the two-variance method of analyzing factory overhead, calculate the following variances from standard cost:
(1)
Factory overhead controllable variance
(2)
Factory overhead volume variance
(b) Prepare the journal entry to apply factory overhead to work in process and record the variances.

Quizplus · Accepted Answer

The Answer of The Jurcevich Corporation manufactures and sells a single product. A standard cost system is used by the company. The standard factory overhead cost for a unit of product is as follows:  The overhead cost per unit was calculated for the year based on a 60,000 unit volume as follows:  The charges to the manufacturing department for April are given below for the 5,200 units produced:  (a) Assuming Jurcevich uses the two-variance method of analyzing factory overhead, calculate the following variances from standard cost:
(1)
Factory overhead controllable variance
(2)
Factory overhead volume variance
(b) Prepare the journal entry to apply factory overhead to work in process and record the variances.

The Jurcevich Corporation Manufactures and Sells a Single Product