## Related questions with answers

Boss Company’s standard cost accounting system recorded this information from its December operations.

$\begin{matrix} \text{Standard direct materials cost } \ldots\ldots\ldots& \text{\$100,000}\\ \text{Direct materials quantity variance (unfavorable)}\ldots\ldots\ldots & \text{3,000}\\ \text{Direct materials price variance (favorable) .}\ldots\ldots\ldots & \text{500}\\ \text{Actual direct labor cost}\ldots\ldots\ldots & \text{90,000}\\ \text{Direct labor efficiency variance (favorable)}\ldots\ldots\ldots & \text{7,000}\\ \text{Direct labor rate variance (unfavorable)}\ldots\ldots\ldots & \text{1,200}\\ \text{Actual overhead cost}\ldots\ldots\ldots & \text{375,000}\\ \text{Volume variance (unfavorable)} \ldots\ldots\ldots& \text{12,000}\\ \text{Controllable variance (unfavorable)}\ldots\ldots\ldots & \text{9,000}\\ \end{matrix}$

- Prepare December 31 journal entries to record the company’s costs and variances for the month. (Do not prepare the journal entry to close the variances.) 2. Identify the variances that would attract the attention of a manager who uses management by exception. Explain what action(s) the manager should consider.

Solution

VerifiedWe are asked to prepare journal entries to record the costs and variances.

## Create an account to view solutions

## Create an account to view solutions

## Recommended textbook solutions

#### Glencoe Accounting: First Year Course

1st Edition•ISBN: 9780078688294Glencoe McGraw-Hill#### Financial and Managerial Accounting

7th Edition•ISBN: 9781259726705Barbara Chiappetta, John J. Wild, Ken W. Shaw#### Financial Accounting

4th Edition•ISBN: 9781259730948 (3 more)Don Herrmann, J. David Spiceland, Wayne Thomas#### Century 21 Accounting: General Journal

11th Edition•ISBN: 9781337623124Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman## More related questions

1/4

1/7