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Kropf Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products based on direct labor-hours. InputsStandard Quantity or Hours per Unit of OutputStandard Price or RateDirect materials 8.60liters$ 8.20per literDirect labor0.70hours$ 26.70per hourVariable manufacturing overhead 0.70hours$ 7.10 per hour The company has reported the following actual results for the product for September: Actual output10, 800unitsRaw materials purchased94, 200litersActual cost of raw materials purchased$ 782,500 Raw materials used in production92,900litersActual direct labor -hours7, 110hoursActual direct labor cost$ 193,302 Actual variable overhead cost$ 45,414 Required: Compute the materials price variance for September. Compute the materials quantity variance for September Compute the labor rate variance for September. Compute the labor efficiency variance for September. Compute the variable overhead rate variance for September. Compute the variable overhead efficiency variance for September. Note: 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.

Kropf Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products based on direct labor-hours. InputsStandard Quantity or Hours per Unit of OutputStandard Price or RateDirect materials 8.60liters$ 8.20per literDirect labor0.70hours$ 26.70per hourVariable manufacturing overhead 0.70hours$ 7.10 per hour The company has reported the following actual results for the product for September: Actual output10, 800unitsRaw materials purchased94, 200litersActual cost of raw materials purchased$ 782,500 Raw materials used in production92,900litersActual direct labor -hours7, 110hoursActual direct labor cost$ 193,302 Actual variable overhead cost$ 45,414 Required: Compute the materials price variance for September. Compute the materials quantity variance for September Compute the labor rate variance for September. Compute the labor efficiency variance for September. Compute the variable overhead rate variance for September. Compute the variable overhead efficiency variance for September. Note: 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.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Kropf Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products based on direct labor-hours. InputsStandard Quantity or Hours per Unit of OutputStandard Price or RateDirect materials 8.60liters$ 8.20per literDirect labor0.70hours$ 26.70per hourVariable manufacturing overhead 0.70hours$ 7.10 per hour The company has reported the following actual results for the product for September: Actual output10, 800unitsRaw materials purchased94, 200litersActual cost of raw materials purchased$ 782,500 Raw materials used in production92,900litersActual direct labor -hours7, 110hoursActual direct labor cost$ 193,302 Actual variable overhead cost$ 45,414 Required: Compute the materials price variance for September. Compute the materials quantity variance for September Compute the labor rate variance for September. Compute the labor efficiency variance for September. Compute the variable overhead rate variance for September. Compute the variable overhead efficiency variance for September. Note: 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 Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products based on direct labor-hours. InputsStandard Quantity or Hours per Unit of OutputStandard Price or RateDirect materials 8.60liters$ 8.20per literDirect labor0.70hours$ 26.70per hourVariable manufacturing overhead 0.70hours$ 7.10 per hour The company has reported the following actual results for the product for September: Actual output10, 800unitsRaw materials purchased94, 200litersActual cost of raw materials purchased$ 782,500 Raw materials used in production92,900litersActual direct labor -hours7, 110hoursActual direct labor cost$ 193,302 Actual variable overhead cost$ 45,414 Required: Compute the materials price variance for September. Compute the materials quantity variance for September Compute the labor rate variance for September. Compute the labor efficiency variance for September. Compute the variable overhead rate variance for September. Compute the variable overhead efficiency variance for September. Note: 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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