The following information comes from the records of Barney Co.for the current period.
a.Compute the direct materials price and quantity variances,direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable.
b.Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.
Definitions:
Manufacturing Business
A type of business that produces finished goods from raw materials through a combination of manpower, machines, and chemical processes.
Statement of Stockholders' Equity
A financial document that shows changes in the equity section of the balance sheet over a period, including net income, dividend payments, and issuance or repurchase of stock.
Stockholder's Equity
The interest in a corporation's assets that exists after debts are paid off, reflecting a stake in ownership.
Retail Business
A business model that involves selling goods directly to consumers, typically in small quantities.
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