Beethoven Company Began Business Early in January Using a Standard

question 151

Essay

Beethoven Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product:
Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:
$\begin{array}{ll}\text { Material price } & \$ 0 \\\text { Material usage } & 4,000 \\\text { Labor rate } & 800 \\\text { Labor efficiency } & 300 \\\text { Overhead volume } & 6,000 \\\text { Overhead budget (2 variance analysis) } & 1,000\end{array}$ Required: Determine the following: (a)fixed overhead budgeted for a year; (b)the number of units completed during January assuming no work in process at January 31; (c)debits made to the Work in Process account for direct material,direct labor,and manufacturing overhead; (d)number of pieces of material issued during January; (e)total of direct labor payroll recorded for January; (f)total of manufacturing overhead recorded in January.