Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of...
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Accounting
Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of direct materials purchased is equal to the quantity used. The following information is available for the most recent month. Assume the allocation base for fixed overhead costs is the number of units. Direct Materials Direct Labor 2.5 hrs. $8.00/hr. 2.8 hrs. $7.50/hr $1,260.00 F $2,160.00 U Standard quantity/unit 6.00 lbs. Standard price (SP)/lb. or hr. $8.10/lb. Actual quantity (AQ)/unit 6.25 lbs. Actual price (AP)/lb. or hr. $8.00/lb. Price variance $562.50 F Quantity/Efficiency variance $1.822.50 U Static budget volume 800 units Actual volume 900 units Actual overhead cost $11,000 Standard variable overhead $5/unit cost Standard fixed overhead cost $5,600 Overhead flexible budget $900 U variance Production volume variance $700 F Journalize the direct labor costs incurred and the assignment of direct labor to Work in Process Inventory, including the related variances
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