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271. 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 efficiency variance for May is:
272. 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 variable overhead efficiency variance for May is:
273. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
274. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
275. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
276. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
277. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
278. Ortman Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.9 liters $8.00 per liter
Direct labor 0.7 hours $17.00 per hour
Variable overhead 0.7 hours $1.00 per hour
The company reported the following results concerning this product in May.
Actual output 1,600 units
Raw materials used in production 12,490 liters
Actual direct labor-hours 1,090 hours
Purchases of raw materials 14,000 liters
Actual price of raw materials purchased $8.10 per liter
Actual direct labor rate $16.10 per hour
Actual variable overhead rate $0.90 per hour
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 May is:
279. Beakins Corporation produces a single product. The standard cost card for the product
follows:
Direct materials (4 yards × $5 per yard) $20
Direct labor (1.5 hours × $10 per hour) $15
Variable manufacturing overhead (1.5 hrs × $4 per hour) $6
During a recent period the company produced 1,200 units of product. Various costs associated
with the production of these units are given below:
Direct materials purchased (6,000 yards) $28,500
Direct materials used in production 5,000 yards
Direct labor cost incurred (2,100 hours) $17,850
Variable manufacturing overhead cost incurred $10,080
The company records all variances at the earliest possible point in time. Variable manufacturing
overhead costs are applied to products on the basis of standard direct labor-hours.
The materials price variance for the period is:
280. Beakins Corporation produces a single product. The standard cost card for the product
follows:
Direct materials (4 yards × $5 per yard) $20
Direct labor (1.5 hours × $10 per hour) $15
Variable manufacturing overhead (1.5 hrs × $4 per hour) $6
During a recent period the company produced 1,200 units of product. Various costs associated
with the production of these units are given below:
Direct materials purchased (6,000 yards) $28,500
Direct materials used in production 5,000 yards
Direct labor cost incurred (2,100 hours) $17,850
Variable manufacturing overhead cost incurred $10,080
The company records all variances at the earliest possible point in time. Variable manufacturing
overhead costs are applied to products on the basis of standard direct labor-hours.
The materials quantity variance for the period is:
281. Beakins Corporation produces a single product. The standard cost card for the product
follows:
Direct materials (4 yards × $5 per yard) $20
Direct labor (1.5 hours × $10 per hour) $15
Variable manufacturing overhead (1.5 hrs × $4 per hour) $6
During a recent period the company produced 1,200 units of product. Various costs associated
with the production of these units are given below:
Direct materials purchased (6,000 yards) $28,500
Direct materials used in production 5,000 yards
Direct labor cost incurred (2,100 hours) $17,850
Variable manufacturing overhead cost incurred $10,080
The company records all variances at the earliest possible point in time. Variable manufacturing
overhead costs are applied to products on the basis of standard direct labor-hours.
The labor rate variance for the period is:
282. Beakins Corporation produces a single product. The standard cost card for the product
follows:
Direct materials (4 yards × $5 per yard) $20
Direct labor (1.5 hours × $10 per hour) $15
Variable manufacturing overhead (1.5 hrs × $4 per hour) $6
During a recent period the company produced 1,200 units of product. Various costs associated
with the production of these units are given below:
Direct materials purchased (6,000 yards) $28,500
Direct materials used in production 5,000 yards
Direct labor cost incurred (2,100 hours) $17,850
Variable manufacturing overhead cost incurred $10,080
The company records all variances at the earliest possible point in time. Variable manufacturing
overhead costs are applied to products on the basis of standard direct labor-hours.
The labor efficiency variance for the period is:
