310. Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost system
and has established the following standards for one unit of product:
Standard
Quantity Standard Price
or Rate Standard
Cost
Direct materials 1.5 pounds $3.00 per pound $4.50
Direct labor 0.6 hours $6.00 per hour $3.60
Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75
During March, the following activity was recorded by the company:
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the
month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for March is:
311. Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost system
and has established the following standards for one unit of product:
Standard
Quantity Standard Price
or Rate Standard
Cost
Direct materials 1.5 pounds $3.00 per pound $4.50
Direct labor 0.6 hours $6.00 per hour $3.60
Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75
During March, the following activity was recorded by the company:
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the
month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for March is:
312. Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost system
and has established the following standards for one unit of product:
Standard
Quantity Standard Price
or Rate Standard
Cost
Direct materials 1.5 pounds $3.00 per pound $4.50
Direct labor 0.6 hours $6.00 per hour $3.60
Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75
During March, the following activity was recorded by the company:
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the
month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for March is:
313. Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost system
and has established the following standards for one unit of product:
Standard
Quantity Standard Price
or Rate Standard
Cost
Direct materials 1.5 pounds $3.00 per pound $4.50
Direct labor 0.6 hours $6.00 per hour $3.60
Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75
During March, the following activity was recorded by the company:
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the
month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead rate variance for March is:
314. Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost system
and has established the following standards for one unit of product:
Standard
Quantity Standard Price
or Rate Standard
Cost
Direct materials 1.5 pounds $3.00 per pound $4.50
Direct labor 0.6 hours $6.00 per hour $3.60
Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75
During March, the following activity was recorded by the company:
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the
month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for March is:
315. Eliezrie Corporation makes a product with the following standard costs:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Per Unit
Direct materials 6.5 kilos $1.00 per kilo $6.50
Direct labor 0.3 hours $10.00 per hour $3.00
Variable overhead 0.3 hours $4.00 per hour $1.20
In January the company’s budgeted production was 7,400 units but the actual production was
7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to
produce this output. During the month, the company purchased 48,500 kilos of the direct material
at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead
cost was $7,714.
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 January is:
316. Eliezrie Corporation makes a product with the following standard costs:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Per Unit
Direct materials 6.5 kilos $1.00 per kilo $6.50
Direct labor 0.3 hours $10.00 per hour $3.00
Variable overhead 0.3 hours $4.00 per hour $1.20
In January the company’s budgeted production was 7,400 units but the actual production was
7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to
produce this output. During the month, the company purchased 48,500 kilos of the direct material
at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead
cost was $7,714.
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 January is:
317. Eliezrie Corporation makes a product with the following standard costs:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Per Unit
Direct materials 6.5 kilos $1.00 per kilo $6.50
Direct labor 0.3 hours $10.00 per hour $3.00
Variable overhead 0.3 hours $4.00 per hour $1.20
In January the company’s budgeted production was 7,400 units but the actual production was
7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to
produce this output. During the month, the company purchased 48,500 kilos of the direct material
at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead
cost was $7,714.
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 January is:
318. Eliezrie Corporation makes a product with the following standard costs:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Per Unit
Direct materials 6.5 kilos $1.00 per kilo $6.50
Direct labor 0.3 hours $10.00 per hour $3.00
Variable overhead 0.3 hours $4.00 per hour $1.20
In January the company’s budgeted production was 7,400 units but the actual production was
7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to
produce this output. During the month, the company purchased 48,500 kilos of the direct material
at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead
cost was $7,714.
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 January is:
319. Eliezrie Corporation makes a product with the following standard costs:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Per Unit
Direct materials 6.5 kilos $1.00 per kilo $6.50
Direct labor 0.3 hours $10.00 per hour $3.00
Variable overhead 0.3 hours $4.00 per hour $1.20
In January the company’s budgeted production was 7,400 units but the actual production was
7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to
produce this output. During the month, the company purchased 48,500 kilos of the direct material
at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead
cost was $7,714.
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 January is: