Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours 8.6 kilos 0.4 hours Standard Price or Rate $ 6.00 per kilo $ 11.00 per hour $5.00 per hour Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production 8,400 units 71,750 kilos 76,900 kilos Purchases of raw materials Actual direct labor-hours 3,320 hours Actual cost of raw materials purchases $ 469,090 Actual direct labor cost $ 35,524 Actual variable overhead cost $ 17,928 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours 8.6 kilos 0.4 hours Standard Price or Rate $ 6.00 per kilo $ 11.00 per hour $5.00 per hour Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production 8,400 units 71,750 kilos 76,900 kilos Purchases of raw materials Actual direct labor-hours 3,320 hours Actual cost of raw materials purchases $ 469,090 Actual direct labor cost $ 35,524 Actual variable overhead cost $ 17,928 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.
Expert Answer:
Answer rating: 100% (QA)
To compute the variances we will use the following formulas a Materials Quantity Variance Materials Quantity Variance Standard Quantity Actual Quantity Standard Price b Materials Price Variance Materi... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
10th Canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these accounting questions
-
Consider the following case study and answer the questions. 1. You are the financial analyst for Apple which is investing in a project to develop a new Iphone11. 2. The project will last for 4 years...
-
1. Choose the reaction that represents the combustion of C6H1202. A) C6H12O2(1) + 8 O2(g) 6 CO2(g) + 6 H2O(g) B) Mg(s) + C6H12O2(1) MgC6H12O2(aq) C) 6 C(s) + 6 H2(g) + O2(g) C6H12O2(1) - D)...
-
You see: Gionata / arrivare / alle 3 You write: Gionata arriva alle tre. Question 1 with 1 blank io / abitare / a Palermo 1 of 1 Question 2 with 1 blank il film / cominciare / alle 8.30 1 of 1...
-
The statement of financial position of Kingbird Limited follows for the current year, 2020: KINGBIRD LIMITED Statement of Financial Position December 31, 2020 Current assets $135,660 Current...
-
Fired Up, Inc., is a small business owned by Curt and Julie Robards. Based in Brisbane, Australia, Fired Up manufacturers and sells Fired Now, a lightweight camping stove the. Recall from Chapter 3...
-
1. List the three objectives that labor unions usually seek. 2. Graphically show the wage rate that a labor union would seek in order to achieve the three different objectives.
-
Dhariwal Industries is currently reviewing its variance analysis process. Over the years, the company has used variance analysis to help control and manage costs and activities within the company....
-
Prepare common-sized financial statements for Leslie Fay for the period 19871991. For that same period, compute for Leslie Fay the ratios shown in Exhibit 2. Given these data, which financial...
-
Anwer Incorporation has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead...
-
Astoria Co. had the following transactions during the month of August 2014: * Cash received from bank loans was $20,000. * Dividends of $9,500 were paid to stockholders in cash. * Revenues earned and...
-
The heat of vaporization AH, of dichloromethane (CH2Cl2) is 28.0 kJ/mol. Calculate the change in entropy AS when 280. g of dichloromethane condenses at 39.8 C. Be sure your answer contains a unit...
-
Zee-Drive Ltd. is a computer manufacturer. One of the items they make is monitors. Zee-Drive has the opportunity to purchase 18,000 monitors from an outside supplier for $215 per unit. One of the...
-
do a case brief Arizona v. Gant, 556 U.S. 332. use some quotation Student briefs 1 Title and Citation 2 Facts of the Case 3 Issues 4 Decisions (Holdings) 5 Reasoning (Rationale) 6 Separate Opinions 7...
-
Investigate some applications of exponential and logarithmic functions in science and engineering. Tell us why you think it is interesting. Discuss a topic different from the ones mentioned already...
-
The current price of a stock is $47, and three-month call options with a strike price of $50 currently sell for $4.70. An investor who feels that the price f the stock will increase is trying to...
-
Wireless local area network issues for a company from a company-wide standpoint.
-
In the current year, the City of Omaha donates land worth $500,000 to Ace Corporation to induce it to locate in Omaha and create an estimated 2,000 jobs for its citizens. a. How much income, if any,...
-
Core Petroleum is considering drilling one well on either the Rago lease or the Bennett lease in Texas. Core does not have sufficient funds to drill both wells and must decide which of the two wells...
-
Polecat Corporation is considering beginning drilling operations in three separate fields. Polecat decides to analyze these fields using a 13% discount rate. The estimated cash flows for each field...
-
Define the following: asset retirement obligation retirement accretion promissory estoppel legally enforceable obligation obligating event
Study smarter with the SolutionInn App