Mansfield Company Began Business Early in January Using a Standard $\$ 10.00$

question 118

Essay

Mansfield 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:
Direct material-5 pieces@$2.00             $\$ 10.00$
Direct labor (variable)-1 sph@$3.00             300

Manufacturing overhead:
Fixed-1 sph@$3.00          $\$ 3.00$
Variable-1 spha @$2.00     $2.00$                     5.00
Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations:

Material price	$ 0
Material usage	4,000
Labor rate	800
Labor efficiency	300
Overhead volume	6,000
Overhead budget (2 variance analysis)	1,000

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.

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Definitions:

Uncultivated Irregularities

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Yuan Period

A dynasty in China (1271-1368) established by Mongol leader Kublai Khan, known for its cultural achievements and the unification of China.

Former Emperor

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New Emperor

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