8-861
293.
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 labor efficiency variance for June is:
8-862
294.
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 labor rate variance for June is:
8-863
295.
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 variable overhead efficiency variance for June is:
8-864
296.
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 variable overhead rate variance for June is:
8-865
8-866
297.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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:
8-867
8-868
298.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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:
8-869
8-870
299.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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 June is:
8-871
8-872
300.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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 June is:
8-873
8-874
301.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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 June is:
8-875
8-876
302.
Gilder Corporation makes a product with the following standard costs:
Standard
Quantity
or
Hours
Standard
Price or
Rate
Standard
Cost Per
Unit
Direct
materials
7.6 grams
$6.00 per
gram
$45.60
Direct
labor
0.1 hours
$16.00
per hour
$1.60
Variable
overhead
0.1 hours
$6.00 per
hour
$0.60
The company reported the following results concerning this product in June.
Originally budgeted
output
5,400
units
Actual output
5,500
units
Raw materials used in
production
39,200
grams
Purchases of raw
materials
44,100
grams
Actual direct labor-
hours
510
hours
Actual cost of raw
materials purchases
$260,190
Actual direct labor
cost
$7,803
Actual variable
overhead cost
$2,754
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 June is:
8-877
8-878
303.
Epley Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
3.5 pounds
$3.00 per pound
Direct labor
0.8 hours
$19.00 per hour
Variable overhead
0.8 hours
$8.00 per hour
In July the company produced 3,300 units using 12,240 pounds of the direct material and
2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the
direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the
actual variable overhead cost was $20,148.
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 July is:
304.
Epley Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
3.5 pounds
$3.00 per pound
Direct labor
0.8 hours
$19.00 per hour
Variable overhead
0.8 hours
$8.00 per hour
In July the company produced 3,300 units using 12,240 pounds of the direct material and
2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the
direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the
actual variable overhead cost was $20,148.
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 July is:
8-880
305.
Epley Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
3.5 pounds
$3.00 per pound
Direct labor
0.8 hours
$19.00 per hour
Variable overhead
0.8 hours
$8.00 per hour
In July the company produced 3,300 units using 12,240 pounds of the direct material and
2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the
direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the
actual variable overhead cost was $20,148.
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 July is: