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.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
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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$ 7.10per 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.
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$ 7.10per 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.
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