Materials 10,000.

00 Cost center-PRD
Labor-Direct 7,500.00 7500
Overhead 5,000.00 5000
Labor rate 70.00 per hour
OH Rate 40.00 per hour 12500
FG-Std price 90.00 per unit

Material Purchases Object PRD

Dr. Materials Inventory 10,000.00 9000
Cr AP 10,000.00 7000
Manufacturing Expenses 4000
Dr Salary 7,500.00 CC-PRD 20000
Cr AP 7,500.00

Dr Overhead Expenses 5,000.00 CC-PRD

Cr AP 5,000.00
Consumption
Material (FI & CO)
Dr Material Consumption 9,000.00 PRD
Cr Materials Inventory 9,000.00
Labor & OH (Internal to CO)
Dr Labor 7,000.00 PRD
Dr Overhead 4,000.00 PRD
Cr Labor 7,000.00 CC-PRD
Cr Overhead 4,000.00 CC-PRD
Confirmation yield(200 unit @90)
Dr FG 18,000.00
Cr Mfg Output Standard 18,000.00 PRD

Settlement
Dr Prod Variance 2,000.00
Cr Mfg Out Variance 2,000.00 PRD

Cost Center Variance

Dr Cost Center Variance 1,500.00
Cr Cost Center Variance Offset 1,500.00 CC-PRD
Cost center-PRD
7000
4000
1500 Cost Center Variance
12500

PRD
18000
2000 Production Variance

20000

P&L
Sales 40000

COS
CC Var 1,500.00
PRD Var 2,000.00

Manufacturing Expenses
Material Consumption 9,000.00
Salary 7,500.00
Overhead 5,000.00
MFg Output Std (18,000.00)
MFg Output Var (2,000.00)
Cost Center Var Offset (1,500.00)
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