ropf Inc. 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 Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.80 liters $ 8.40 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 7.30 per hour The company has reported the following actual results for the product for September: Actual output 11,000 units Raw materials purchased 98,400 liters Actual cost of raw materials purchased $ 854,500 Raw materials used in production 96,830 liters Actual direct labor-hours 4,000 hours Actual direct labor cost $ 120,302 Actual variable overhead cost $ 25,414 Required: a. Compute the materials price variance for September. 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 spending 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

Kropf Inc. 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	Standard Quantity or Hours per Unit of Output	Standard Price or Rate
Direct materials		8.80	liters	$	8.40	per liter
Direct labor		0.40	hours	$	28.70	per hour
Variable manufacturing overhead		0.40	hours	$	7.30	per hour

The company has reported the following actual results for the product for September:


Actual output		11,000	units
Raw materials purchased		98,400	liters
Actual cost of raw materials purchased	$	854,500
Raw materials used in production		96,830	liters
Actual direct labor-hours		4,000	hours
Actual direct labor cost	$	120,302
Actual variable overhead cost	$	25,414

Required:

a. Compute the materials price variance for September.

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 spending 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.)

Expert Solution

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions