Beethoven Company began business early in January using a standard costing for its single product. With standard capacity set at 10,000 standard productive hours per month, the following standard cost sheet was set up for one unit of product:
Fixed costs are incurred evenly throughout the year. The following unfavorable variances from standard costs were recorded during the first month of operations:
Required: Determine the following: (a) fixed overhead budgeted for a year; (b) the number of units completed during January assuming no work in process at January 31; (c) debits made to the Work in Process account for direct material, direct labor, and manufacturing overhead; (d) number of pieces of material issued during January; (e) total of direct labor payroll recorded for January; (f) total of manufacturing overhead recorded in January.

Question

Beethoven Company began business early in January using a standard costing for its single product. With standard capacity set at 10,000 standard productive hours per month, the following standard cost sheet was set up for one unit of product:
  Fixed costs are incurred evenly throughout the year. The following unfavorable variances from standard costs were recorded during the first month of operations:
  Required: Determine the following: (a) fixed overhead budgeted for a year; (b) the number of units completed during January assuming no work in process at January 31; (c) debits made to the Work in Process account for direct material, direct labor, and manufacturing overhead; (d) number of pieces of material issued during January; (e) total of direct labor payroll recorded for January; (f) total of manufacturing overhead recorded in January.

Quizplus · Accepted Answer

The Answer of Beethoven Company began business early in January using a standard costing for its single product. With standard capacity set at 10,000 standard productive hours per month, the following standard cost sheet was set up for one unit of product:
  Fixed costs are incurred evenly throughout the year. The following unfavorable variances from standard costs were recorded during the first month of operations:
  Required: Determine the following: (a) fixed overhead budgeted for a year; (b) the number of units completed during January assuming no work in process at January 31; (c) debits made to the Work in Process account for direct material, direct labor, and manufacturing overhead; (d) number of pieces of material issued during January; (e) total of direct labor payroll recorded for January; (f) total of manufacturing overhead recorded in January.

Beethoven Company Began Business Early in January Using a Standard