Smyer Corporation makes a product with the following standard costs:
Smyer Corporation makes a product with the following standard
costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||
Direct materials | 6.9 | pounds | $14.00 | per pound | $96.60 | ||
Direct labor | 2.8 | hours | $18.00 | per hour | $ 50.40 | ||
Variable overhead | 2.8 | hours | $ 7.00 | per hour | $ 19.60 | ||
The company reported the following results concerning this product
in July.
Originally budgeted output | 6,700 | units |
Actual output | 6,410 | units |
Raw materials used in production | 46,830 | pounds |
Actual direct labor-hours | 17,960 | hours |
Purchases of raw materials | 49,380 | pounds |
Actual price of raw materials | $ 14.30 | per pound |
Actual direct labor rate | $ 21.10 | per hour |
Actual variable overhead rate | $ 5.70 | per hour |
The materials price variance is recognized when materials are
purchased. Variable overhead is applied on the basis of direct
labor-hours. (Round your answer to the nearest whole dollar
amount.)
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
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