Homework: chapter 7 HW Score: 0 of 30 pts E7-29 (similar to) Save 6 of 6 (0 comp

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Homework: chapter 7 HW Score: 0 of 30 pts E7-29 (similar to) Save 6 of 6 (0 complete) Hw Score: 0%, 0 of 140 pts Question Help The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials and direct manufacturing labor EEB (Click the icon to view the standards.) The number of finished units budgeted for January 2017 was 9,760; 9,750 units were actually produced. ?(Click the icon to view actual data.) purchased amounted to 97,600 lb., at a total cost of $497,760. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage Read the requirements. Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. i Standards Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Actual inputBudgeted price Cost Direct materials: 10 lb. at S4.90 per lb Direct manufacturing labor: 0.5 hour at $30 per hour S 49.00 Direct materials (purchases) Direct materials (usage) Direct manufacturing labor 15.00 PrintDone Requirements Actual Data Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor 1. 2. Prepare journal entries to record the variances in requirement 1 3. Comment on the January 2017 price and efficiency variances of Schuyler Actual results in January 2017 were as follows: Direct materials: 95,500 lb. used Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? 4. Direct manufacturing labor: 4,700 hours 148,050 PrintDone Print Done Enter any number in the edit fields and then click Check Answer. Clear All Check Answer remaining

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Standard PU: Qty Rate Amt Direct Material 10 4.90 49.00 Direct Labor 0.50 30.00 15.00 64.00 Actual Output 9750 Standard for Actual: Qty Rate Amt Direct Material 97500 4.90 4,77,750 Direct Labor 4875 30.00 1,46,250 6,24,000 Actual: Qty Rate Amt Direct Material 95500 5.10 4,87,050 497760 Total Purchase Value Direct Labor 4700 31.50 1,48,050 97600 Total Units Purchases 6,35,100 5.10 Per Unit Price Variances: Journal posting Variances: A Material Price Variance: F/A A Material Price Variance: (SP-AP)Actual Qty Consumed Material Account Dr.(95500*5.10) 4,87,050 (4.90-5.10)*95500 To Material Price Variance 19,100 -19100 A To Account Payable(95500*4.90) 467950 A1 Material Usage Variance: (SQ-AQ)SP B Material Usage Variance: (97500-95500)4.90 WIP Account Dr.(97500*4.90) 4,77,750 9800 F Material Qty Variance Dr. 9,800 To Material Account(95500*5.10) 467950 B Labor Price Variance: (SP-AP)Actual Hours A Labor Price & Eff Variance: (30-31.50)*4700 WIP Account Dr.(30*4875) 1,46,250 -7050 A Labor Price Variance 7050 Labor Qty Variance Dr. 5,250 B1 Labor Eff Variance: To Wages Payable(4700*31.50) 1,48,050 (SH-AH)SP (4875-4700)30 5250 F The Company is doing good in terms of negotiation wrt to Rates of Purchase/wage. But is lagging in terms of Efficency. It should consider rethinking of the procedures realating to production

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