Fastic Corporation makes a product with the following standard costs: Standard Price or Rate $5.00 per...
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Fastic Corporation makes a product with the following standard costs: Standard Price or Rate $5.00 per liter $17.00 per hour $6.00 per hour The company reported the following results concerning this product in August. Inputs Direct materials. Direct labor..... Variable overhead. Standard Quantity or Hours 6.9 liters 0.3 hours 0.3 hours Originally budgeted output. Actual output....... Raw materials used in production. Actual direct labor-hours Purchases of raw materials... Actual price of raw materials. Actual direct labor rate. Actual variable overhead rate.. Standard Cost Per Unit a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. Compute the direct labor rate variance. d. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. 8,600 units 8,400 units 58,330 liters 2,310 hours 62,500 liters $4.90 per liter $17.10 per hour $5.50 per hour $34.50 $5.10 $1.80 The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Fastic Corporation makes a product with the following standard costs: Standard Price or Rate $5.00 per liter $17.00 per hour $6.00 per hour The company reported the following results concerning this product in August. Inputs Direct materials. Direct labor..... Variable overhead. Standard Quantity or Hours 6.9 liters 0.3 hours 0.3 hours Originally budgeted output. Actual output....... Raw materials used in production. Actual direct labor-hours Purchases of raw materials... Actual price of raw materials. Actual direct labor rate. Actual variable overhead rate.. Standard Cost Per Unit a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. Compute the direct labor rate variance. d. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. 8,600 units 8,400 units 58,330 liters 2,310 hours 62,500 liters $4.90 per liter $17.10 per hour $5.50 per hour $34.50 $5.10 $1.80 The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
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a Materials quantity variance Standard quantity 69 liters per unit x 8400 units 58260 liters Actual ... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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