202
224) 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
7.4
liters
$
7.00
Direct labor
0.70
hours
$
21.70
Variable manufacturing
overhead
0.70
hours
$
5.90
–
The company has reported the following actual results for the product for September:
Actual output
9,600
units
Raw materials purchased
75,000
liters
Actual cost of raw materials purchased
562,500
Raw materials used in production
71,050
liters
Actual direct labor-hours
6,410
hours
Actual direct labor cost
$
142,302
Actual variable overhead cost
$
34,614
–
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 rate variance for September.
f. Compute the variable overhead efficiency variance for September.
f.
225) Doby Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
Standard Price
or Rate
Direct materials
2.7 ounces
$7.00 per ounce
Direct labor
0.2 hours
$17.00 per hour
Variable overhead
0.2 hours
$6.00 per hour
In July the company produced 4,800 units using 13,450 ounces of the direct material and 970
direct labor-hours. During the month the company purchased 14,600 ounces of the direct material
at a price of $7.20 per ounce. The actual direct labor rate was $16.20 per hour and the actual
variable overhead rate was $5.40 per hour. The materials price variance is computed when
materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
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.
226) Heye 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
6.7 grams
$7.80 per gram
Direct labor
0.20 hours
$19.00 per hour
Variable manufacturing overhead
0.20 hours
$8.30 per hour
The company has reported the following actual results for the product for August:
Actual output
6,300
units
Raw materials purchased
48,100
grams
Actual price of raw materials
$7.00
per gram
Raw materials used in production
42,200
grams
Actual direct labor-hours
1,350
hours
Actual direct labor rate
$20.10
per hour
Actual variable overhead rate
$9.00
per hour
Required:
a. Compute the materials price variance for August.
b. Compute the materials quantity variance for August.
c. Compute the labor rate variance for August.
d. Compute the labor efficiency variance for August.
e. Compute the variable overhead rate variance for August.
f. Compute the variable overhead efficiency variance for August.
210
227) Mirabito 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
5.0 grams
$9.70 per gram
Direct labor
0.30 hours
$21.20 per hour
Variable manufacturing overhead
0.30 hours
$9.20 per hour
The company has reported the following actual results for the product for December:
Actual output
6,000
units
Raw materials purchased
31,700
grams
Actual price of raw materials
$9.00
per gram
Actual cost of raw materials purchased
$285,300
Raw materials used in production
29,990
grams
Actual direct labor-hours
1,760
hours
Actual direct labor rate
$21.90
per hour
Actual direct labor cost
$38,544
Actual variable overhead rate
$8.80
per hour
Actual variable overhead cost
$15,488
Required:
a. Compute the materials price variance for December.
b. Compute the materials quantity variance for December.
c. Compute the labor rate variance for December.
d. Compute the labor efficiency variance for December.
e. Compute the variable overhead rate variance for December.
f. Compute the variable overhead efficiency variance for December.
213
228) Glaab 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
4.0 liters
$6.00 per liter
Direct labor
0.90 hours
$18.00 per hour
Variable manufacturing overhead
0.90 hours
$8.00 per hour
The company has reported the following actual results for the product for September:
Actual output
3,100
units
Raw materials purchased
13,200
liters
Actual price of raw materials
$6.70
per liter
Actual cost of raw materials purchased
$88,440
Raw materials used in production
12,410
liters
Actual direct labor-hours
3,010
hours
Actual direct labor rate
$18.60
per hour
Actual direct labor cost
$55,986
Actual variable overhead rate
$8.50
per hour
Actual variable overhead cost
$25,585
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 rate variance for September.
f. Compute the variable overhead efficiency variance for September.
216
229) Duboise Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price
or Rate
Standard Cost
Per Unit
Direct materials
9.3 ounces
$7.00 per ounce
$65.10
Direct labor
0.3 hours
$21.00 per hour
$6.30
Variable overhead
0.3 hours
$2.00 per hour
$0.60
The company reported the following results concerning this product in October.
Originally budgeted output
1,800
units
Actual output
1,900
units
Raw materials used in production
18,800
ounces
Actual direct labor-hours
580
hours
Purchases of raw materials
20,900
ounces
Actual price of raw materials
$7.20
per ounce
Actual direct labor rate
$21.70
per hour
Actual variable overhead rate
$1.80
per hour
The materials price variance is recognized when materials are purchased. Variable overhead is
applied on the basis of direct labor-hours.
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.
218
230) Fortes 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
8.0
ounces
$
6.10
per ounce
Direct labor
0.60
hours
$
19.80
per hour
Variable manufacturing
overhead
0.60
hours
$
4.40
per hour
–
The company has reported the following actual results for the product for April:
Actual output
5,600
units
Raw materials purchased
48,200
ounces
Actual cost of raw materials purchased
279,560
Raw materials used in production
44,810
ounces
Actual direct labor-hours
3,150
hours
Actual direct labor cost
$
64,890
Actual variable overhead cost
$
12,915
–
Required:
a. Compute the materials price variance for April.
b. Compute the materials quantity variance for April.
c. Compute the labor rate variance for April.
d. Compute the labor efficiency variance for April.
e. Compute the variable overhead rate variance for April.
f. Compute the variable overhead efficiency variance for April.