Slick Corporation is a small producer of synthetic motor oil. During May, the co

Question

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,031. It also incurred average direct labor costs of $15 per hour for the 4,018 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,641, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows:

Compute the materials price and quantity variances. (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. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Compute the labor rate and efficiency variances. (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.)

Compute the manufacturing overhead spending and volume variances.

Prepare the journal entries to charge materials (at standard) to Work in Process.

Prepare the journal entries to charge direct labor (at standard) to Work in Process.

Prepare the journal entries to charge manufacturing overhead (at standard) to Work in Process.

Prepare the journal entries to transfer the cost of the 5,000 cases of synthetic motor oil produced in May to Finished Goods.

Prepare the journal entries to close any over or underapplied overhead to Cost of Goods Sold.

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,031. It also incurred average direct labor costs of $15 per hour for the 4,018 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,641, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows:

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Slick Corporation is a small producer of synthetic motor oil. During May, the co

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