Price and efficiency variances, journal entries

Price and efficiency variances, journal entries. The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:Direct materials: 10lbs at $4.50 per lbs. $45.00Direct manufacturing labor: 0.5 hour at $30 per hour 15.00The number of finished units budgeted for January 2014 was 10,000; 9,850 units were actually produced.Actual results in January 2014 were as follows:Direct materials: 98,055 lbs. usedDirect manufacturing labor: 4,900 hours $154,350Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,00 lbs., at a total cost of $465,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage.1. Compute the January 2014 price and efficiency variances of direct materialsAnd direct manufacturing labor.2. Prepare journal entries to record the variances in requirement 1.3. Comment on the January 2014 price and efficiency variances of Schuyler Corporation.4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?Problem 2Straightforward 4-variance overhead analysis. The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400.1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis.2. Prepare journal entries the 4-variance analysis.3. Describe how individual fixed manufacturing overhead items are controlled from day to day.4. Discuss possible causes of the fixed manufacturing overhead variances.