Leerar Corporation makes a product with the following standard costs: ................................................Standard Quantity or Hours........................Standard Price or Rate
Question:
Leerar Corporation makes a product with the following standard costs:
................................................Standard Quantity or Hours........................Standard Price or Rate
Inputs.........................................
Direct Materials.............................8.1 ounces.....................................................$3.00 per ounce
Direct labor....................................0.5 hours.....................................................$18.00 per hour
Variable overhead........................0.5 hours.........................................................$2.00 per hour
In December the company produced 4,200 units using 34,870 ounces of the direcct material and 1,900 direct labor hours. During the month, the company purchased 39,700 ounces of the direct material at a total cost of $111,160. The actual direct labor cost for the month was $35,530 and the actual variable overhead cost was $3,990. 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 cariance.
b. Compute the materials price variance.
c. Compute the labor efficiencey variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer