Accounting Chapter 8 21 Variable manufacturing overhead costs are applied to products on

8-841

8-842

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:

8-843

8-844

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:

8-845

8-846

283.

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 variable overhead rate variance for the period is:

8-847

8-848

284.

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 variable overhead efficiency variance for the period is:

8-849

8-850

285.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-851

286.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-852

287.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-853

288.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-854

8-855

289.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-856

290.

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610

direct labor-hours. During the month, the company purchased 6,000 liters of the direct

material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual

variable overhead rate was $2.90 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 April is:

8-857

8-858

291.

Galla Corporation makes a product with the following standard costs:

Standard

Quantity

or Hours

Standard

Price or

Rate

Standard

Cost Per

Unit

Direct

materials

8.2

pounds

$7.00 per

pound

$57.40

Direct

labor

0.4 hours

$20.00

per hour

$8.00

Variable

overhead

0.4 hours

$2.00 per

hour

$0.80

The company budgeted for production of 2,400 units in June, but actual production was

2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-

hours to produce this output. The company purchased 21,700 pounds of the direct

material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the

actual variable overhead rate was $1.80 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 June is:

8-859

8-860

292.

Galla Corporation makes a product with the following standard costs:

Standard Quantity or

Hours

Standard Price or

Rate

Standard Cost

Per Unit

Direct

materials

8.2 pounds

$7.00 per pound

$57.40

Direct labor

0.4 hours

$20.00 per hour

$8.00

Variable

overhead

0.4 hours

$2.00 per hour

$0.80

The company budgeted for production of 2,400 units in June, but actual production was

2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-

hours to produce this output. The company purchased 21,700 pounds of the direct

material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the

actual variable overhead rate was $1.80 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 June is: