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1. The accountants for Polyglaze, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in June: Standard Cost Actual Cost Direct materials: Standard: 10 ounces at $0.15 per ounce $ 1.50 Actual: 11 ounces at $0.16 per ounce $ 1.76 Direct labor: Standard: 0.50 hours at $10.00 per hour 5.00 Actual: 0.45 hours at $10.40 per hour 4.68 Manufacturing overhead: Standard: $5,000 fixed cost and $5,000 variable cost for 10,000 units normal monthly volume 1.00 Actual: $5,000 fixed cost and $4,600 variable cost for 8,000 units actually produced in June 1.20 Total unit cost $ 7.50 $ 7.64 a-1 Compute the materials price variance and the materials quantity variance, indicating whether each is favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Materials price variance $ U, None, F Materials quantity variance $ U, None, F a-2 Prepare the journal entry to record the cost of direct materials used during June in the Work in Process account (at standard). (Omit the "$" sign in your response.) General Journal Debit Credit Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance b-1 Compute the labor rate variance and the labor efficiency variance, indicating whether each is favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Labor rate variance $ U, None, F Labor efficiency variance $ U, None, F b-2 Prepare the journal entry to record the cost of direct labor used during June in the Work in Process account (at standard). (Omit the "$" sign in your response.) General Journal Debit Credit Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance c-1 Compute the overhead spending variance and the overhead volume variance, indicating whether each is favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Overhead spending variance $ U, None, F Overhead volume variance $ U, None, F c-2 Prepare the journal entry to assign overhead cost to production in June. (Omit the "$" sign in your response.) General Journal Debit Credit Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance Select one: direct labor, materials inventory, labor rate variance, work in process inventory, materials price variance, manufacturing overhead, labor efficiency variance, materials quantity variance 2. McGill's overhead spending variance is unfavorable by $600. The company's accountant credited the Cost of Goods Sold account for $4,350 to close out any over- or underapplied overhead at the end of the current period. Compute McGill's overhead volume variance. (Omit the "$" sign in your response.) Overhead volume variance $ 3. Marlo Enterprises produces radon mitigation pumps. Information pertaining to the company's monthly direct labor usage is provided below: Standard labor rate per hour $ 16 Standard hours allowed per radon mitigation pump 0.5 hours Actual pumps produced during the current month 9,000 Actual labor hours worked during the current month 3,600 Actual labor cost for the current month $ 64,800 a. Compute the company's labor rate variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Labor rate variance $ U, None, F b. Compute the company's labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Labor efficiency variance $ U, None, F An extremely large order of radon mitigation pumps was filled during the month for exportation to Saudi Arabia. Filling this order resulted in extended hours for many of the companys workers. c1. Which labor variance reflects the extra hours worked by Marlos employees? Labor efficiency variance Labor rate variance c2. Was their time well utilized? No Yes 4. The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:

						Variances
	Standard Cost				Unfavorable			Favorable
Direct materials	$	90,000
Price variance					$	4,500
Quantity variance								$	2,700
Direct labor		180,000
Rate variance									1,800
Efficiency variance						5,400
Manufacturing overhead		270,000
Spending variance									3,600
Volume variance									2,400

Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead. (Omit the "$" sign in your response.)

Actual costs incurred
Direct materials	$
Direct labor	$
Manufacturing overhead	$

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