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Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit 6.5 ounces $ 2.00 per ounce $ 13.00 $18.00 per hour $14.40 $ 2.00 per hour $1.60 Direct materials Direct labor 0.8 hours Variable overhead 0.8 hours The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate ** 4,600 units 5,300 units 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $ 87.60 per hour $6.10 per hour At 1 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is comput hen the materials are purchased.

Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit 6.5 ounces $ 2.00 per ounce $ 13.00 $18.00 per hour $14.40 $ 2.00 per hour $1.60 Direct materials Direct labor 0.8 hours Variable overhead 0.8 hours The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate ** 4,600 units 5,300 units 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $ 87.60 per hour $6.10 per hour At 1 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is comput hen the materials are purchased.

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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Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit 6.5 ounces $ 2.00 per ounce $ 13.00 $14.40 $1.60 Direct materials Direct labor 0.8 hours Variable overhead 0.8 hours $18.00 per hour $ 2.00 per hour The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate *- 4,600 units 5,300 units 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $ 87.60 per hour $6.10 per hour At 1 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is comput hen the materials are purchased.
Transcribed Image Text:Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit 6.5 ounces $ 2.00 per ounce $ 13.00 $14.40 $1.60 Direct materials Direct labor 0.8 hours Variable overhead 0.8 hours $18.00 per hour $ 2.00 per hour The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate *- 4,600 units 5,300 units 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $ 87.60 per hour $6.10 per hour At 1 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is comput hen the materials are purchased.
Actual output 5,300 units Raw materials used in production 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $87.60 per hour $6.10 per hour Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is: O $4,260 Favorable O $4,255 Favorable O $4,260 Unfavorable O $4,255 Favorable
Transcribed Image Text:Actual output 5,300 units Raw materials used in production 30,500 ounces 2,110 hours 32,900 ounces $97.10 per ounce $87.60 per hour $6.10 per hour Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is: O $4,260 Favorable O $4,255 Favorable O $4,260 Unfavorable O $4,255 Favorable
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