Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 3.70 liters e.se hours e.se hours The company has reported the following actual results for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,900 units 96, 300 liters $823, se0 54, 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 rete veriance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhesd 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 (L.e., zero varlance). Input all amounts as positive values.)
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 3.70 liters e.se hours e.se hours The company has reported the following actual results for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,900 units 96, 300 liters $823, se0 54, 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 rete veriance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhesd 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 (L.e., zero varlance). Input all amounts as positive values.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me correct the wrong answers. Thank you!
Transcribed Image Text:Kropf Inc. has provided the following data concerning one of the products in its standord cost system. Variable manufacturing
overhead is spplied to products on the basis of direct lebor-hours.
Standard Quantity or Hours per Unit
of Output
8.70 liters
e.se hours
Standard Price ar Rate
$ 8.30 per liter
$27.70 per hour
$ 7.20 per hour
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
e.se hours
The company hos reported the following actual results for the product for September.
Actual autput
Raw materials purchased
Actual cost of raw naterials purchased
Raw materials used in production
Actual direct labor-hours
Actual direct labor cost
Actual variable overhead cost
10,9ee units
96, 300 liters
$823, See
94,850 liters
5,0e0 hours
$142, 302
$ 32,414
Required:
a. Compute the materials price variance for September.
b. Compute the materials quantity variance for September.
c. Compute the labor rate variance for September.
d. Compute the lebor efficiency variance for September.
e. Compute the variable overhead rste vorionce for September.
f. Compute the verieble overhesd efficiency veriance 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.)
Answer is complete but not entirely correct.
s 2,725 OU
Materials price variance
Materials quantity variance
a.
b.
Is
166 U
C.
Labar rate variance
IS 3,800 u
IS
128.087
IS 3,600 F
d.
Labor efficiency variance
e.
Variable averhead rate variance
Variable averhead efficiency
Is 3.240 OF
f.
variance
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