Variance ProblemStandard QuantityStandard CostStandard price$1.75 per hr$11.50 per hr$5.00 per hrper unit$7.00$13.80$6.00per unitDirect MaterialsDirect LaborVariable Overhead41.21.2Manufacturing overhead is applied using direct labor hours as the base. During the month of July, XYZcompany had the following information available about production:a. 9,000 units were producedb. 37,000 lbs of raw materials were purchased at a cost of $62,900c. There was no beginning inventory and no ending iInventory of raw materialsd. 10,500 hours of direct labor were used during the month at a cost of $119,175e. Variable overhead cost in July totaled $57,750Compute the following and verify the total variance for each component of product cost:1. Material price variance, Material quantity variance, and Total material variance2. Labor rate variance, Labor efficiency variance, and Total labor variance3. Variable Overhead spending variance, Variable Overhead efficiency variance, and Total VariableOverhead variance

Name: Variance ProblemStandard QuantityStandard CostStandard price$1.75 per
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Description: Variance ProblemStandard QuantityStandard CostStandard price$1.75 per hr$11.50 per hr$5.00 per hrper unit$7.00$13.80$6.00per unitDirect MaterialsDirect LaborVariable Overhead41.21.2Manufacturing overhead is applied using direct labor hours as the ba

working notes AQ means actual quantity AP means actual price SP means standard price SQ means…

Business

Accounting

1. Material price variance, Material quantity variance, and Total material variance 2. Labor rate variance, Labor efficiency variance, and Total labor variance 3. Variable Overhead spending variance, Variable Overhead efficiency variance, and Total Variab. Overhead variance

1. Material price variance, Material quantity variance, and Total material variance 2. Labor rate variance, Labor efficiency variance, and Total labor variance 3. Variable Overhead spending variance, Variable Overhead efficiency variance, and Total Variab. Overhead variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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