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 Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance $ 386,210 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 Required: 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., zero variance). Input all amounts as positive values.)
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 Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance $ 386,210 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 Required: 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., zero variance). Input all amounts as positive values.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
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Problem 3PB: Activity-based department rate product costing and product cost distortions Big Sound Inc....
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Please Solve requriments a to f
![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
Actual
put
Raw materials purchased
Actual cost of raw materials purchased
Raw materials used in production
Actual direct labor-hours
Actual direct labor cost
Actual variable overhead cost
Standard Quantity or
Hours per Unit of
Output
8.0 ounces
0.5 hours
0.5 hours
The company has reported the following actual results for the product for April:
6,500 units
62,350 ounces
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
$ 386,210
52,020 ounces
3,200 hours
Standard Price or Rat
$ 8.10 per ounce
$24.70 per hour
$ 6.40 per hour
$ 88,880
$ 20,395
Required:
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., zero variance). Input all amounts as positive values.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa68ececf-8a6e-45b8-b1c9-464a37a2f4fe%2Fc395f46c-62e0-4c1f-8195-6a28c2eb684a%2Fmyawe8_processed.png&w=3840&q=75)
Transcribed Image Text: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
Actual
put
Raw materials purchased
Actual cost of raw materials purchased
Raw materials used in production
Actual direct labor-hours
Actual direct labor cost
Actual variable overhead cost
Standard Quantity or
Hours per Unit of
Output
8.0 ounces
0.5 hours
0.5 hours
The company has reported the following actual results for the product for April:
6,500 units
62,350 ounces
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
$ 386,210
52,020 ounces
3,200 hours
Standard Price or Rat
$ 8.10 per ounce
$24.70 per hour
$ 6.40 per hour
$ 88,880
$ 20,395
Required:
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., zero variance). Input all amounts as positive values.)
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