iguez Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Multiple Choice Standard Quantity or Hours $2,232 U 2.3 liters 0.7 hours 0.7 hours Standard Price or Rate $ 7.00 per liter $ 22.00 per hour $ 2.00 per hour he company budgeted for production of 2.600 units in September, but actual production was 2.500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5.800 liters of the direct material at S the actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour. the company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased the materials quantity variance for September is: Standard Cost Per Unit $ 16.10 $ 15.40 $ 1.40
iguez Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Multiple Choice Standard Quantity or Hours $2,232 U 2.3 liters 0.7 hours 0.7 hours Standard Price or Rate $ 7.00 per liter $ 22.00 per hour $ 2.00 per hour he company budgeted for production of 2.600 units in September, but actual production was 2.500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5.800 liters of the direct material at S the actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour. the company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased the materials quantity variance for September is: Standard Cost Per Unit $ 16.10 $ 15.40 $ 1.40
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Munabhai
Transcribed Image Text:Miguez Corporation makes a product with the following standard costs:
Direct materials
Direct labor
Variable overhead
Multiple Choice
O
The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.
The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for September is:
$2,232 U
O
$2,170 F
O $2.232 F
Standard.
Quantity or
Hours
$2,170 U
2.3 liters
0.7 hours
0.7 hours
Standard Price or Rate
$ 7.00 per liter
$ 22.00 per hour
$ 2.00 per hour
Standard Cost Per
Unit
$ 16.10
$ 15.40
$ 1.40
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