Kropf Inc. has provided the following data concerning one of the products in its standard cost...
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Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 9. 40 liters Inputs Standard Price or Rate $ 9.00 per liter $24. 70 per hour $ 7.90 per hour Direct materials Direct labor 0.60 hours Variable manuf acturing overhead 0. 60 hours The company has reported the following actual results for the product for September: Actual output 11, 600 units Raw materials purchased Actual cost of raw materials purchased Raw materialls used in production 110, 000 liters $1, 010, 500 109, 070 liters 6, 380 hours $ 160, 302 $ Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 45, 414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead spending variance for September. f. Compute the variable overhead efficiency variance for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. variable overhead spending variance f. Variable overhead efficiency variance Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 9. 40 liters Inputs Standard Price or Rate $ 9.00 per liter $24. 70 per hour $ 7.90 per hour Direct materials Direct labor 0.60 hours Variable manuf acturing overhead 0. 60 hours The company has reported the following actual results for the product for September: Actual output 11, 600 units Raw materials purchased Actual cost of raw materials purchased Raw materialls used in production 110, 000 liters $1, 010, 500 109, 070 liters 6, 380 hours $ 160, 302 $ Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 45, 414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead spending variance for September. f. Compute the variable overhead efficiency variance for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. variable overhead spending variance f. Variable overhead efficiency variance
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a Materials Price Variance 9 x 110000 1010500 20500 U b Materials Quant... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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