Kropf Inc. 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 S.70 liters e.s0 hours 0.s0 hours Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour The company has reported the following ectual resulta for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw naterials used in production Actual direct labor-hours Actual direct labor cost 10,900 units 96, 300 liters $823, s00 4,se liters 5,000 hours $142, 302 $ 12,414 Actual variable overhead cost Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rete variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rete variance for September. f. Compute the variable overhead efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). Input all amounts as positive values.) a Materials price variance Materials quantity variance E Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance E Variable overhead efficiency variance
Kropf Inc. 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 S.70 liters e.s0 hours 0.s0 hours Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour The company has reported the following ectual resulta for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw naterials used in production Actual direct labor-hours Actual direct labor cost 10,900 units 96, 300 liters $823, s00 4,se liters 5,000 hours $142, 302 $ 12,414 Actual variable overhead cost Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rete variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rete variance for September. f. Compute the variable overhead efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). Input all amounts as positive values.) a Materials price variance Materials quantity variance E Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance E Variable overhead efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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