Cost Accounting

The Tyler Company has the following amounts related to its first-year operations

Materials and supplies (all purchased on account) $220000

Direct materials issued for production 170000

Unused direct materials returned to storeroom 5,000

Supplies issued (to production departments) 18 000

Direct labor (on production) 150,000

Indirect labor (on production) 40,000

Depreciation—factory, plant, and equipment 11.000

Miscellaneous factory overhead incurred (normally detailed) 25,000

Factory overhead applied (60% of direct labor cost) 90.000

Cost of completed production 305.000

Sales (all on account) 320,000

Cost of goods sold 260,000

Present the general journal entry to close the manufacturing overhead accounts to cost of goods sold. Show the T-accounts for factory department overhead control and for factory overhead applied.

(?M

Standard Cost Standard cost for one

Quantity Price completed unit

Material 3 lbs. $2.00 $ 6.00

•

Labor 2 hrs. 400 8.00

Overhead: Variable 2 firs. 1 00 2.00

Fixed 2hrs. 2.00 400

Total $2Q00

Budqeted Activity: 50 Standard direct labor hours

Actual Data

Units produced 20

Material—Actual usage = 100 pounds at a total cost of $225

Labor—Actual hours 30 at $4.10

Overhead: Variable $45

Fixed $115

Compute the following variances.

1. Material price

2. Material quantity

3. Labor rate

4. Labor quantity

5. Total net overhead variance

6. Variable overhead spending variance

7. Variable overhead efficiency variance

8. Fixed overhead budget variance

9. Fixed overhead volume variance

10. Fixed overhead denominator variance (Two-way analysis of overhead)

11. Fixed overhead controllable (budget) variance (Two-way analysis of overhead)

12. Volume variance (Three-way analysis of overhead)

13. Efficiency variance(Three-way analysis of overhead) 14 Spending variance (Three way analysis of overhead)