Howard Company Has Established the Following Standards

question 67

Essay

Howard Company has established the following standards:
Direct materials: 2.0 pounds at $4.10
Direct labor: 1.5 hours at $7 per hour
Additional information was extracted from the accounting records:
Actual production: 32,000 completed units
Direct materials purchased: 70,000 pounds at $3.82, or $267,400
Direct materials consumed: 65,000 pounds
Actual labor incurred: 51,000 hours at $6.30, or $321,300
Direct-labor rate variance: $35,700 favorable
Direct-labor efficiency variance: $21,000 unfavorable
Assume that the company computes variances at the earliest point in time.
Required:
Prepare journal entries to record the:
A. Purchase of direct materials.
B. Usage of direct materials.
C. Incurrence of direct labor costs.

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Definitions:

Postsynaptic Membrane

The part of the cell membrane of a neuron that is on the receiving end of a synapse, where neurotransmitter receptors are located.

Excitatory Postsynaptic Potential

A temporary increase in synaptic potential that makes a post-synaptic neuron more likely to generate an action potential.

Hyperpolarized

A state in which a cell's membrane potential is more negative than its normal resting potential.

Synapse

A junction between two nerve cells, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.