Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:
Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls.
$\begin{array}{lll}
\text {Direct materials ( $ 5 \mathrm{~m} $ of denim $ (012 $ per metre) }&\$10\
\text { Direct labour (3 hours $ @ \$ 6 $ per hour)}&18\\end{array}$

-Refer to the Figure.What is the entry to record the issuance and usage of materials?
A)Work in Process 1,170,000Materials Usage Variance 48,750Materials 1,218,750
B)Work in Process 1,200,000Materials Usage Variance 50,000Materials 1,250,000
C)Work in Process 1,218,750Materials Usage Variance 48,750Materials 1,170,000
D)Work in Process 1,250,000Materials Usage Variance 50,000Materials 1,200,000

Question

Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:
Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls.
 $\begin{array}{lll}
\text {Direct materials ( $ 5 \mathrm{~m} $ of denim $ (012 $ per metre) }&\$10\
\text { Direct labour (3 hours $ @ \$ 6 $ per hour)}&18\\end{array}$

-Refer to the Figure.What is the entry to record the issuance and usage of materials?
A)Work in Process 1,170,000Materials Usage Variance 48,750Materials 1,218,750
B)Work in Process 1,200,000Materials Usage Variance 50,000Materials 1,250,000
C)Work in Process 1,218,750Materials Usage Variance 48,750Materials 1,170,000
D)Work in Process 1,250,000Materials Usage Variance 50,000Materials 1,200,000

Quizplus · Accepted Answer

The Answer of Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:
Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls.
 $\begin{array}{lll}
\text {Direct materials ( $ 5 \mathrm{~m} $ of denim $ (012 $ per metre) }&\$10\
\text { Direct labour (3 hours $ @ \$ 6 $ per hour)}&18\\end{array}$

-Refer to the Figure.What is the entry to record the issuance and usage of materials?
A)Work in Process 1,170,000Materials Usage Variance 48,750Materials 1,218,750
B)Work in Process 1,200,000Materials Usage Variance 50,000Materials 1,250,000
C)Work in Process 1,218,750Materials Usage Variance 48,750Materials 1,170,000
D)Work in Process 1,250,000Materials Usage Variance 50,000Materials 1,200,000

Allan Company Manufactures Overalls -Refer to the Figure