260. The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for July was:
261. The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for July was:
262. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 materials quantity variance for April is:
263. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 materials price variance for April is:
264. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 labor efficiency variance for April is:
265. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 labor rate variance for April is:
266. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 April is:
267. Berends Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 9.2 pounds $3.00 per
pound
Direct labor 0.3 hours $17.00 per hour
Variable overhead 0.3 hours $3.00 per hour
The company reported the following results concerning this product in April.
Actual output 8,800 units
Raw materials used in production 78,150 pounds
Purchases of raw materials 85,900 pounds
Actual direct labor-hours 2,560 hours
Actual cost of raw materials purchases $240,520
Actual direct labor cost $39,424
Actual variable overhead cost $6,912
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 rate variance for April is:
268. Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
Standard Quantity or Hours Standard Price or Rate
Direct materials 2.0 plates $2.75 per plate
Direct labor 0.2 hours $15.00 per hour
Variable overhead 0.2 hours $7.00 per hour
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials
(plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is
assigned to blood tests on the basis of standard direct labor-hours. The following events
occurred during May:
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for May is:
269. Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
Standard Quantity or Hours Standard Price or Rate
Direct materials 2.0 plates $2.75 per plate
Direct labor 0.2 hours $15.00 per hour
Variable overhead 0.2 hours $7.00 per hour
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials
(plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is
assigned to blood tests on the basis of standard direct labor–hours. The following events
occurred during May:
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for May is:
270. Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
Standard Quantity or Hours Standard Price or Rate
Direct materials 2.0 plates $2.75 per plate
Direct labor 0.2 hours $15.00 per hour
Variable overhead 0.2 hours $7.00 per hour
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials
(plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is
assigned to blood tests on the basis of standard direct labor–hours. The following events
occurred during May:
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for May is:
