Sininsky Corporation is a small producer of synthetic motor oil. During May, the
ID: 2369535 • Letter: S
Question
Sininsky 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, Sininsky purchased and used 16,500 gallons of direct materials at a cost of $20,035. It also incurred average direct labor costs of $13 per hour for the 4,056 hours worked in May by its production personnel. Manufacturing overhead incurred for the month totaled $9,200. Sininsky's standard cost information for each case of synthetic motor oil is as follows:
Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).Unfavorable amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Compute the labor rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Unfavorable amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
Assuming a favorable volume variance of $450, compute the total manufacturing overhead variance.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Unfavorable amounts should be indicated by a minus sign.Omit the "$" sign in your response.)
Prepare the journal entries to charge materials (at standard) to Work in Process. (Omit the "$" sign in your response.)
Prepare the journal entries to charge direct labor (at standard) to Work in Process. (Omit the "$" sign in your response.)
Prepare the journal entries to close any over or underapplied overhead to Cost of Goods Sold. (Omit the "$" sign in your response.)
Sininsky 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, Sininsky purchased and used 16,500 gallons of direct materials at a cost of $20,035. It also incurred average direct labor costs of $13 per hour for the 4,056 hours worked in May by its production personnel. Manufacturing overhead incurred for the month totaled $9,200. Sininsky's standard cost information for each case of synthetic motor oil is as follows:
Explanation / Answer
Actual Standard Qnty. Rate Amount Qnty. Rate Amount Material 16,500.00 1.21 20,035.00 16,250.00 1.30 21,125.00 Labor 4,056.00 13.00 52,728.00 3,750.00 16.00 60,000.00 MPV 1,415.00 MQV (325.00) MCV 1,090.00 LRV 12,168.00 MQV (4,896.00) MCV 7,272.00 Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)