Kropf 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 Standard Quantity or Hours per Unit of Output 8.10 liters 0.40 hours 0.40 hours Standard Price or Rate $ 7.70 per liter $ 28.70 per hour $6.60 per hour The company has reported the following actual results for the product for September: 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 Required: a. Compute the materials price variance for September. 10,300 units 84,700 liters $ 667,500 83,460 liters 3,840 hours $ 115,302 $ 20,314 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 rate 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.) 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 U U F F F
Kropf 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 Standard Quantity or Hours per Unit of Output 8.10 liters 0.40 hours 0.40 hours Standard Price or Rate $ 7.70 per liter $ 28.70 per hour $6.60 per hour The company has reported the following actual results for the product for September: 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 Required: a. Compute the materials price variance for September. 10,300 units 84,700 liters $ 667,500 83,460 liters 3,840 hours $ 115,302 $ 20,314 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 rate 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.) 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 U U F F F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kropf 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
Standard Quantity or
Hours per Unit of
Output
8.10 liters
0.40 hours
0.40 hours
Standard Price or Rate
$ 7.70 per liter
$ 28.70 per hour
$6.60 per hour
The company has reported the following actual results for the product for September:
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
Required:
a. Compute the materials price variance for September.
10,300 units
84,700 liters
$ 667,500
83,460 liters
3,840 hours
$ 115,302
$ 20,314
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 rate 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.)
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
U
U
F
F
F
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