Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variablemanufacturing overhead is applied to products on the basis of direct labor-hours.Standard Quantity orHours per Unit of Output8.5 ounces0.6 hours0.6 hours.InputsDirect materialsDirect laborVariable manufacturing overheadThe company has reported the following actual results for the product for April:6,100 units55,050 ouncesActual outputRaw materials purchasedActual cost of raw materials purchasedRaw materials used in productionActual direct labor-hoursActual direct labor costActual variable overhead cost$ 303,01051,860 ounces3,360 hoursStandard Price or Rate$6.60 per ounce$24.80 per hour$ 4.90 per hour$ 86,810$ 15,717Required:a. Compute the materials price variance for April.b. Compute the materials quantity variance for April.c. Compute the labor rate variance for April.d. Compute the labor efficiency variance for April.e. Compute the variable overhead rate variance for April.f. Compute the variable overhead efficiency variance for April.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.) a. Compute the materials price variance for April.b. Compute the materials quantity variance for April.c. Compute the labor rate variance for April.d. Compute the labor efficiency variance for April.e. Compute the variable overhead rate variance for April.f. Compute the variable overhead efficiency variance for April.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.)a. Materials price varianceb. Materials quantity variancec. Labor rate varianced. Labor efficiency variancee. Variable overhead rate variancef. Variable overhead efficiency variance

Variance analysis is the difference between the standard performance and the actual performance,…

Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 8.5 ounces 0.6 hours 0.6 hours Standard Price or Rate $6.60 per ounce $24.80 per hour $ 4.90 per hour

Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 8.5 ounces 0.6 hours 0.6 hours Standard Price or Rate $6.60 per ounce $24.80 per hour $ 4.90 per hour

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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