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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 Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.10 liters $ 7.70 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 6.60 per hour The company has reported the following actual results for the product for September: Actual output 10,300 units Raw materials purchased 84,700 liters Actual cost of raw materials purchased $ 667,500 Raw materials used in production 83,460 liters Actual direct labor- hours 3,840 hours Actual direct labor cost $ 115,302 Actual variable overhead cost $ 20, 314 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 labor efficiency variance for September. e. Compute the

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 Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.10 liters $ 7.70 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 6.60 per hour The company has reported the following actual results for the product for September: Actual output 10,300 units Raw materials purchased 84,700 liters Actual cost of raw materials purchased $ 667,500 Raw materials used in production 83,460 liters Actual direct labor- hours 3,840 hours Actual direct labor cost $ 115,302 Actual variable overhead cost $ 20, 314 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 labor efficiency variance for September. e. Compute the

FINANCIAL ACCOUNTING
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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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 Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.10 liters $ 7.70 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 6.60 per hour The company has reported the following actual results for the product for September: Actual output 10,300 units Raw materials purchased 84,700 liters Actual cost of raw materials purchased $ 667,500 Raw materials used in production 83,460 liters Actual direct labor- hours 3,840 hours Actual direct labor cost $ 115,302 Actual variable overhead cost $ 20, 314 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 labor efficiency variance for September. e. Compute the variable overhead spending variance for September. f. Compute the variable overhead efficiency variance for September. (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.)
Transcribed Image Text: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 Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.10 liters $ 7.70 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 6.60 per hour The company has reported the following actual results for the product for September: Actual output 10,300 units Raw materials purchased 84,700 liters Actual cost of raw materials purchased $ 667,500 Raw materials used in production 83,460 liters Actual direct labor- hours 3,840 hours Actual direct labor cost $ 115,302 Actual variable overhead cost $ 20, 314 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 labor efficiency variance for September. e. Compute the variable overhead spending variance for September. f. Compute the variable overhead efficiency variance for September. (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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