Question : 4.The following information pertains to Skandalis Company's production of one : 1416268

 

4.The following information pertains to Skandalis Company's production of one unit of its manufactured product during the month of June:

 

Standard quantity of materials10 lbs.

Standard cost per lb.$.85

Standard direct labor hours.5

Standard wage rate per hour$12.00

Materials purchased200,000 lbs.

Cost of materials purchased$.82 per lb.

Materials consumed for manufacture of 10,000 units112,000 lbs.

Actual direct labor hours required for 10,000 units4,600

Actual direct labor cost per hour$12.25

 

(a)  The materials price variance is recognized when materials are purchased.  Compute materials price and quantity variances and labor rate and efficiency variances.

(b)  Prepare the journal entries to record:

(1) the purchase of the materials,

(2) putting materials into production, and

(3) direct labor costs.

b.