Morgan Inc.

Morgan Inc. is a small company that manufactures baseball caps. For the past several years, the company has used a standard cost accounting system. Cole prepares monthly income statements for management with variances reported within the statement. In April 2013, 67,500 caps were produced. There were no finished caps on hand at either April 1 or April 30. The selling price per cap was $10.00. The following standard and actual cost data applied to the month of April when normal capacity was 14,000 direct labor hours.

Cost Element

Standard (per unit)

Actual

Direct materials

1 .5 yards at $3.00 per yard

$318,600 for 108,000 yards ($2.95 yard)

Direct labor

.2 hour at $11.00 per hour

$158,760 for 14,175 hours ($11 20 per hour)

Overhead

.2 hour at $ 5.00 per hour

$49,000 fixed overhead

$20,000 variable overhead

$20,000 variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000 and budgeted variable costs were $21000.

Instructions

(a) Compute the total. price, and quantity variances for (1) materials, (2) labor, and (3) the total, controllable, and volume variances for manufacturing overhead (assuming no beginning or ending material balances).

(b) Journalize the entries to record the variances and the completion and sale of the caps.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Benefits of our college essay writing service

  • 80+ disciplines

    Buy an essay in any subject you find difficult—we’ll have a specialist in it ready

  • 4-hour deadlines

    Ask for help with your most urgent short tasks—we can complete them in 4 hours!

  • Free revision

    Get your paper revised for free if it doesn’t meet your instructions.

  • 24/7 support

    Contact us anytime if you need help with your essay

  • Custom formatting

    APA, MLA, Chicago—we can use any formatting style you need.

  • Plagiarism check

    Get a paper that’s fully original and checked for plagiarism

What the numbers say?

  • 527
    writers active
  • 9.5 out of 10
    current average quality score
  • 98.40%
    of orders delivered on time
error: