# Standard Cost Variances, Slick Corporation

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of \$20,514. It also incurred average direct labor costs of \$15 per hour for the 4,067 hours worked in May by its production personnel. Manufacturing overhead for the month totaled \$9,707, of which \$2,200 was considered fixed. Slick’s standard cost information for each case of synthetic motor oil is as follows:

Direct materials standard price \$ 1.30 per gallon
Standard quantity allowed per case 3.25 gallons
Direct labor standard rate \$ 16 per hour
Standard hours allowed per case 0.75 direct labor hours
Fixed overhead budgeted \$ 2,600 per month
Normal level of production 5,200 cases per month
Variable overhead application rate \$ 1.50 per case
Fixed overhead application rate (\$2,600 Ã?· 5,200 cases) 0.50 per case
________________________________________ ________________________________________
Total overhead application rate \$ 2.00 per case
________________________________________________________________________________ ________________________________________________________________________________
________________________________________

a. Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the “\$” sign in your response.)

Materials price variance \$

Materials quantity variance \$

________________________________________

b. Compute the labor rate and efficiency variances. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the “\$” sign in your response.)

Labor rate variance \$

Labor efficiency variance \$

________________________________________

c. Compute the manufacturing overhead spending and volume variances. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Omit the “\$” sign in your response.)

________________________________________

d-1 Prepare the journal entries to charge materials (at standard) to Work in Process. (Omit the “\$” sign in your response.)

General Journal Debit Credit

________________________________________

d-2 Prepare the journal entries to charge direct labor (at standard) to Work in Process. (Omit the “\$” sign in your response.)

General Journal Debit Credit

________________________________________

General Journal Debit Credit

________________________________________

d-4 Prepare the journal entries to transfer the cost of the 5,000 cases of synthetic motor oil produced in May to Finished Goods. (Omit the “\$” sign in your response.)

General Journal Debit Credit

________________________________________

d-5 Prepare the journal entries to close any over or underapplied overhead to Cost of Goods Sold. (Omit the “\$” sign in your response.)

General Journal Debit Credit

________________________________________

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Psychology
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Anthropology
excellent loved the services
Customer 452443, September 23rd, 2022
Nursing
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Thank you!
Customer 452451, November 27th, 2022
Theology
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Excellent timely work
Customer 452451, April 19th, 2023
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Excellent service - thank you!
Customer 452469, February 20th, 2023
Anthropology
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend