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404. Sizzle Company uses a standard cost system to collect costs related to the production of
its "No-Stick" lawn chairs. The direct material for the chairs is teflon. Sizzle uses a standard
direct material cost of $40.00 per chair (0.8 pounds of teflon × $50.00 per pound). During April,
Sizzle purchased 2,100 pounds of teflon for $106,575. Sizzle used 1,750 pounds of this teflon in
April to produce 1,800 lawn chairs.
Required:
Calculate Sizzle's materials price and materials quantity variances for April.
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405. The following materials standards have been established for a particular product:
Standard quantity per unit of output 9.2 grams
Standard price $14.70 per gram
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 5,500 grams
Actual cost of materials purchased $76,450
Actual materials used in production 5,100 grams
Actual output 540 units
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
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406. Zee Corporation has developed the following cost standards for the production of its
leather backpacks:
Standard Cost Per Backpack
Leather (0.9 yards × $22 per yard) $19.80
Direct labor (1.3 hours × $9.00 per hour) $11.70
Variable overhead (1.3 hours × $15.00 per hour) $19.50
Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last
month were as follows:
Number of backpacks produced 15,000
Direct labor hours incurred 18,800
Yards of leather purchased 14,500
Yards of leather used in production 14,100
Cost of leather purchased $306,675
Direct labor cost $159,800
Variable overhead cost $285,760
The direct materials purchases variance is computed when the materials are purchased.
Required:
Compute the following variances for Zee.
a. Materials price variance.
b. Materials quantity variance.
c. Labor efficiency variance.
d. Variable overhead rate variance.
8-566
407. Rardin Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.4 ounces $8.00 per ounce
Direct labor 0.3 hours $16.00 per hour
Variable overhead 0.3 hours $7.00 per hour
The company reported the following results concerning this product in July.
Actual output 2,200 units
Raw materials used in production 16,420 ounces
Purchases of raw materials 17,900 ounces
Actual direct labor-hours 720 hours
Actual cost of raw materials purchases $141,410
Actual direct labor cost $12,528
Actual variable overhead cost $5,112
The company applies variable overhead on the basis of direct labor-hours. The direct materials
purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
8-569
408. Graybeal Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 4.3 ounces $6.00 per ounce
Direct labor 0.7 hours $21.00 per hour
Variable overhead 0.7 hours $7.00 per hour
The company reported the following results concerning this product in March.
Actual output 3,500 units
Raw materials used in production 14,710 ounces
Actual direct labor-hours 2,270 hours
Purchases of raw materials 16,700 ounces
Actual price of raw materials $5.80 per ounce
Actual direct labor rate $21.90 per hour
Actual variable overhead rate $7.30 per hour
The materials price variance is recognized when materials are purchased. Variable overhead is
applied on the basis of direct labor-hours.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
8-572
409. Smyer Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Per Unit
Direct materials 7.1 pounds $5.00 per pound $35.50
Direct labor 0.8 hours $17.00 per hour $13.60
Variable overhead 0.8 hours $7.00 per hour $5.60
The company reported the following results concerning this product in July.
Originally budgeted output 4,700 units
Actual output 4,500 units
Raw materials used in production 34,150 pounds
Actual direct labor-hours 3,610 hours
Purchases of raw materials 36,500 pounds
Actual price of raw materials $5.10 per pound
Actual direct labor rate $18.10 per hour
Actual variable overhead rate $6.70 per hour
The materials price variance is recognized when materials are purchased. Variable overhead is
applied on the basis of direct labor-hours.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
8-575
410. Moates Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 6.5 kilos $1.00 per kilo
Direct labor 0.2 hours $21.00 per hour
Variable overhead 0.2 hours $7.00 per hour
In January the company produced 5,800 units using 38,740 kilos of the direct material and 1,110
direct labor-hours. During the month, the company purchased 41,000 kilos of the direct material
at a total cost of $49,200. The actual direct labor cost for the month was $20,979 and the actual
variable overhead cost was $6,993. The company applies variable overhead on the basis of direct
labor-hours. The direct materials purchases variance is computed when the materials are
purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
8-578
411. Kowaleski Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 2.8 kilos $4.00 per kilo
Direct labor 0.1 hours $21.00 per hour
Variable overhead 0.1 hours $4.00 per hour
In June the company produced 9,100 units using 27,010 kilos of the direct material and 930
direct labor-hours. During the month the company purchased 30,600 kilos of the direct material
at a price of $3.70 per kilo. The actual direct labor rate was $19.90 per hour and the actual
variable overhead rate was $4.20 per hour. The materials price variance is computed when
materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
