11-141
153. The variable overhead rate variance for June is:
Schuetz Corporation makes a product whose variable overhead standards are based on
direct labor-hours. The quantity standard is 0.4 hours per unit. The variable overhead rate
standard is $5.00 per hour. In July the company produced 7,500 units using 2,740 direct labor–
hours. The actual variable overhead rate was $5.20 per hour.
154. The variable overhead efficiency variance for July is:
11-143
155. The variable overhead rate variance for July is:
Mazzo Corporation makes a product with the following standards for direct labor and
variable overhead:
In February the company’s budgeted production was 5,000 units, but the actual production was
5,100 units. The company used 2,090 direct labor-hours to produce this output. The actual
variable overhead cost was $6,688. The company applies variable overhead on the basis of direct
labor-hours.
156. The variable overhead efficiency variance for February is:
11-145
157. The variable overhead rate variance for February is:
Marten Corporation makes a product with the following standards for direct labor and
variable overhead:
In May the company produced 2,800 units using 300 direct labor-hours. The actual variable
overhead cost was $1,620. The company applies variable overhead on the basis of direct labor–
hours.
158. The variable overhead efficiency variance for May is:
159. The variable overhead rate variance for May is:
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160. Thompson Company uses a standard cost system for its single product. The following
data are available:
Actual experience for the current year:
Standards per unit of product:
Required:
Compute the following variances for raw materials, direct labor, and variable overhead, assuming
that the price variance for materials is recognized at point of purchase:
a. Direct materials price variance.
b. Direct materials quantity variance.
c. Direct labor rate variance.
d. Direct labor efficiency variance.
e. Variable overhead rate variance.
f. Variable overhead efficiency variance.
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161. Fastic Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in August.
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 direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
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162. Blomdahl Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in October.
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 direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
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163. Silmon Corporation makes a product with the following standard costs:
In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580
direct labor-hours. During the month the company purchased 24,100 grams of the direct material
at a price of $6.80 per gram. The actual direct labor rate was $14.60 per hour and the actual
variable overhead rate was $3.90 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 direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
11-155
164. Igel Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in September.
The company applies variable overhead on the basis of direct labor–hours. The direct materials
purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
11-157
165. Schlager Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in August.
The company applies variable overhead on the basis of direct labor–hours. The direct materials
purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
