Question Details

Compute the direct materials price 




1.The following information comes from the records of Dina Co. for the current period.
a. Compute the direct materials price and quantity variances, direct labor rate and efficiency variances

Actual costs and quantities:
	Direct materials used…..……………………….		38,000 feet @$6.20 per foot
	Direct labor hours used…………………………		50,660 hours
	Direct labor rate per hour……………………….		$16
	Factory overhead…………………………….….		$211,600
	25,000 units were produced during the period.

Standard costs and quantities per unit:
	Direct materials…………………………..…..….		1.5 ft.@$6.10 per ft.
	Direct labor…......... ………………………..……		2 hours @ $17 per hour

and state whether the variance is favorable or unfavorable.
b. Prepare the journal entries to charge direct materials and direct labor costs
to goods in process and the materials and labor variances to their proper
accounts.
Actual costs and quantities:
	Direct materials used…..……………………….		38,000 feet @$6.20 per foot
	Direct labor hours used…………………………		50,660 hours
	Direct labor rate per hour……………………….		$16
	Factory overhead…………………………….….		$211,600
	25,000 units were produced during the period.

Standard costs and quantities per unit:
	Direct materials…………………………..…..….		1.5 ft.@$6.10 per ft.
	Direct labor…......... ………………………..……		2 hours @ $17 per hour

Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour



2.The following information comes from the records of Dina Co. for the current period.
a. Compute the overhead controllable and volume variances. In each case, state whether the variance is
favorable or unfavorable.
b. Prepare the journal entries to charge overhead costs to goods in process and the overhead variances to
their proper accounts.
Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour




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