8-881
306.
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 rate variance for July is:
8-882
307.
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 variable overhead efficiency variance for July is:
308.
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 variable overhead rate variance for July is:
8-885
8-886
309.
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 price variance for March is:
8-887
8-888
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:
8-889
8-890
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:
8-891
8-892
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:
8-893
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:
8-895
8-896
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:
8-897
8-898
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:
8-899
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: