2023 AJack Partnership manufactures jackhammers AJack Partnership is looking for guidance in the variances of its standard cost system It | Assignments Online

     AJack Partnership manufactures jackhammers. AJack Partnership is   looking for guidance in the variances of its standard cost system. It would   like you to assist in understanding material price, material quantity, rate,   efficiency, and overhead variances.   The standard   cost card information for unit of product is below.     Standard cost card per unit of   product            Direct materials: 4 pounds at   $9.00 per pound of steel $36.00          Direct labor: 2.0 direct labor   hours at $20.00 per hour 40          Variable overhead: 100% of a   direct labor hour at $10.00 per hour 20          Fixed overhead: 100% of a   direct labor hour at $20.00 per hour 40          Standard cost per unit $136.00                     The   following information is available in the year just finished:                 AJack   Partnership manufactured 10,000 jackhammers during the year.     The   total purchases of steel in the year at a cost of $8.75 per pound were 45,000   pounds.   All   of the material was used to manufacture the 10,000 jackhammers.     There   was no beginning or ending inventory.       The   material was purchased on January 15, 20XX       AJack   Partnership incurred 21,000 direct labor hours at $19.50 per hour.     During   the year, one production order was issued on February 15 20XX, number 789,   for 10,000 jackhammers.   Actual   variable overhead was $210,000.        Actual   fixed overhead was $405,000.                   Assignment   Guidelines:         Material                      1.   Compute the material price variance for Jan 15, 20XX.      2.   Provide the accounting entry for the price variance.       Labor                      1.   Compute the labor rate variance.        2.   Compute the labor efficiency variance.        3.   Provide the accounting entry for the labor rate and efficiency variances.     Overhead                      1.   Compute the variable overhead rate variance.       2.   Compute the variable overhead efficiency variance.       3.   Provide the accounting entry for the overhead rate and efficiency variances.