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Algers Company_Standard Costing_Variance Analysis

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Question;Algers Company produces;dry fertilizer. At the beginning of the year, Algers had the following standard;cost sheet;Direct materials (5lbs.;@ $2.60) $13.00;Direct Labor (0.75 hr;$18.00) 13.50;Fixed overhead (0.75 hr;@ $4.00) 3.00;Variable overhead (0.75;hr @ $3.00) 2.25;Standard cost per unit;$31.75;Algers computers is;overhead rates using practical volume, which is 54,000 units. The actual;results for the year are as follows;a. Units produced;53,000;b. Direct materials;purchased: 274,000 pounds at $2.50 per pound;c. Direct materials;used: 270,300 pounds;d. Direct labor: 40,100;hours at $17.95 per hour;e. Fixed overhead;$161,700;f. Variable overhead;$122,000;Required;1. Compute price and;usage variances for direct materials.;2. Compute the direct labor;rate and labor efficiency variances.;3. Compute the fixed;overhead spending and volume variances. Intercept the volume variance.;4. Compute the variable;overhead spending and efficiency varainces.;5. Prepare journal;entries for the following;a. The purchase of;direct materials;b. The issurance of;direct materials to production (Work in Process);c. The addition of;direct labor to Work in Process;d. The addition of;overhead to Work in Process;e. The incurrence of;actual overhead costs;f. Closing out of variances;to Cost of Goods Sold

 

Paper#37432 | Written in 18-Jul-2015

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