J Company produces copy paper. The company has established the following direct materials and direct labor...

80.2K

Verified Solution

Question

Accounting

J Company produces copy paper. The company has established thefollowing direct materials and direct labor standards for one caseof copy paper:
Paper pulp (3 lbs. @ $0.40) $ 1.20
Labor (2 hrs. @ $12) 24.00
Total prime cost $25.20
During the ?rst quarter of the year, J Company produced 45,000cases of copy paper. The company purchased and used 135,700 poundsof paper pulp at $0.38 per pound. Actual direct labor used was91,000 hours at $12.10 per hour.
Required:
1. Calculate the direct materials price and usage variances.
2. Calculate the direct labor rate and ef?ciency variances.
3. Prepare the journal entries for the direct materials anddirect labor variances.
Note: please provide your explanations onspreadsheet or Word as written solutions are difficult to read

Answer & Explanation Solved by verified expert

4.1 Ratings (780 Votes)

solution 1 Direct Material Cost Variance Actual Cost Standard cost for actual quantity Standard Cost AQ AP AQ SP SQ SP 135700 038 5156600 135700 040 5428000 135000 040 5400000 271400 F 28000 U Direct Material Price Variance Direct See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

J Company produces copy paper. The company has established thefollowing direct materials and direct labor standards for one caseof copy paper:Paper pulp (3 lbs. @ $0.40) $ 1.20Labor (2 hrs. @ $12) 24.00Total prime cost $25.20During the ?rst quarter of the year, J Company produced 45,000cases of copy paper. The company purchased and used 135,700 poundsof paper pulp at $0.38 per pound. Actual direct labor used was91,000 hours at $12.10 per hour.Required:1. Calculate the direct materials price and usage variances.2. Calculate the direct labor rate and ef?ciency variances.3. Prepare the journal entries for the direct materials anddirect labor variances.Note: please provide your explanations onspreadsheet or Word as written solutions are difficult to read