George Smyth Opened a Computer Repair Business on Apr

question 72

Essay

George Smyth opened a computer repair business on Apr. 1, 20--. During the first month of operations, the firm had
the following transactions. Record these transactions on page 1 of the general journal. Omit explanations.
Post appropriate transactions to the general ledger.
Apr. 1
George Smyth invested $30,000 cash in the business.
2
Paid rent for April, $2,100.
8
Bought equipment for $12,000 and issued a check for $3,000 as a down payment.
12
Performed services for $3,200 in cash, and $1,200 on credit.
19
Paid electric bill, $225.
25
Received $900 on account from credit customers.
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Definitions:

Overhead Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials and the standard cost, showing how much more or less was spent on purchasing materials.

Direct Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed, multiplied by the standard rate, indicating efficiency in labor usage.

Overhead Volume Variance

The difference between the expected (or standard) amount of manufacturing overhead costs given a certain level of production and the actual overhead costs incurred.