Discuss the favorable variances as negative numbers


1.)Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. If 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour, what is the direct labor for the following: Enter favorable variances as negative numbers.

a. Rate variance $    SelectFavorableUnfavorableItem
b. Time variance $    SelectFavorableUnfavorableItem
c. Cost variance $    SelectFavorableUnfavorableItem

2.)Oak Company produces a chair that requires 6 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 48,875 yards.


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Journalize the entry to record the standard direct materials used in production. If required, round your answers to two decimal places. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".







 
























3)Ruby Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard. Enter favorable variances as negative numbers.

Determine the following:

a. Price variance $      SelectFavorableUnfavorable
b. Quantity variance $    SelectFavorableUnfavorable
c. Cost variance $    SelectFavorableUnfavorable



4)This company records inventory purchases at standard cost and also records purchase price variances.


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Prepare the journal entry for a purchase of 6,000 widgets that were bought at $8.00 and have a standard cost of $8.15. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".







 



























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Accounting Basics: Discuss the favorable variances as negative numbers
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