In: Accounting
Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $89.20 per raft. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data pertain to November:
Required:
1. Compute the following amounts.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November.
c. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of November.
2. Prepare journal entries to record the following:
a. Purchase of raw material and rate variance.
b. Adding direct material to Work-in-Process Inventory and efficiency variance.
c. Adding direct labor to Work-in-Process Inventory and labor variances.