(Solution) - Perry Manufacturing Company uses a standard cost system in its -(2025 Original AI-Free Solution)

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Perry Manufacturing Company uses a standard cost system in its accounting records. The standard costs for its one product are as follows:

Normal capacity is 2,000 direct labor hours per month. Materials, work in process, and finished goods are recorded in inventory at standard cost. The following information is taken from last month's records:
Required:
Prepare journal entries to record the information provided. Use the two-variance method to compute materials and labor variances and the four-variance method to compute overhead variances.