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erhead is applied to products on the basis of dire Sta Enputs irect materials irect labor fariable manufacturing overhead e company has reported the following actual res

erhead is applied to products on the basis of dire Sta Enputs irect materials irect labor fariable manufacturing overhead e company has reported the following actual res

FINANCIAL ACCOUNTING
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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Please help me with D, E, and F. Thank you!

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufecturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 8.78 liters e.se hours e.5e hours Standard Price or Rate $ 8.38 per liter $27.70 per hour $ 7.20 per hcur Inputs Direct materials Direct labor Variable manufacturing overhead The company hss reported the following sctual results for the product for September. Actual output Raw materials purchased Actual cost of raw materials purchased Raw naterials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 18,980 units 96, 3e0 liters $823, see 94,850 liters 5,0ee hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity veriance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhesd efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). 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 rate variance f. Variable overhead efficiency variance
Transcribed Image Text:Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufecturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 8.78 liters e.se hours e.5e hours Standard Price or Rate $ 8.38 per liter $27.70 per hour $ 7.20 per hcur Inputs Direct materials Direct labor Variable manufacturing overhead The company hss reported the following sctual results for the product for September. Actual output Raw materials purchased Actual cost of raw materials purchased Raw naterials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 18,980 units 96, 3e0 liters $823, see 94,850 liters 5,0ee hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity veriance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhesd efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). 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 rate variance f. Variable overhead efficiency variance
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