Allan Company
Allan Company Manufactures Overalls The Company Required 600,000 M at $1

Allan Company
Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour per unit at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows: $\begin{array}{lll}\text {Direct materials ( \( 5 \mathrm{~m} \) of denim \( @ \$ 2 \) per metre) }&\$10\\\text {Direct labour (3 hours \( @ \$ 6 \) per }&18\\\end{array}$
The company required 600,000 m at $1.95 per metre to make the 125,000 overalls.There were no beginning or ending inventories.
-Refer to Allan Company. Assuming that the variances are NOT significant, what are the entries to close the variances of labour and materials?

A) Materials Price Variance 30,000
Materials Usage Variance 50,000
Labour Efficiency Variance 75,000
Cost of Goods Sold 155,000
Cost of Goods Sold 90,625
Labour Rate Variance 90,625
B) Materials Price Variance 31,250
Materials Usage Variance 48,750
Labour Efficiency Variance 78,125
Cost of Goods Sold 158,125
Cost of Goods Sold 93,750
Labour Rate Variance 93,750
C) Cost of Goods Sold 155,000
Materials Price Variance 30,000
Materials Usage Variance 50,000
Labour Efficiency Variance 75,000
Labour Rate Variance 90,625
Cost of Goods Sold 90,625
D) Cost of Goods Sold 158,125
Materials Price Variance 31,250
Materials Usage Variance 48,750
Labour Efficiency Variance 78,125
Labour Rate Variance 93,750
Cost of Goods Sold 93,750