8-821
8-822
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:
8-823
8-824
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:
8-825
8-826
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:
8-827
8-828
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:
8-829
8-830
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:
8-831
8-832
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:
8-833
8-834
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:
8-835
8-836
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:
8-837
8-838
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:
8-840
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: