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$ 7.10per hour The company has reported the following actual results for the product for September Actual output10,800units Raw 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$ 7.10per hour The company has reported the following actual results for the product for September Actual output10,800units Raw 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.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning