1. Solly Corporation produces a product for national distribution. Standards for
ID: 2340605 • Letter: 1
Question
1. Solly Corporation produces a product for national distribution. Standards for the product are:
Materials: 12 ounces per unit at 60¢ per ounce.
Labor: 2 hours per unit at $8 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
Materials: 14,000 ounces purchased and used at a total cost of $7,700.
Labor: 2,500 hours worked at a total cost of $20,625.
The materials quantity variance is:
2. Termeer Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
The company has reported the following actual results for the product for August:
The variable overhead efficiency variance for the month is closest to:
3. Ravena Labs., Inc. makes a single product which has the following standards:
Direct materials: 2.5 ounces at $20 per ounce
Direct labor: 1.4 hours at $12.50 per hour
Variable manufacturing overhead: 1.4 hours at 3.50 per hour
Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:
3,750 units of compound were produced during the month.
There was no beginning direct materials inventory.
Direct materials purchased: 12,000 ounces for $225,000.
The ending direct materials inventory was 2,000 ounces.
Direct labor-hours worked: 5,600 hours at a cost of $67,200.
Variable manufacturing overhead costs incurred amounted to $18,200.
Variable manufacturing overhead applied to products: $18,375.
The materials quantity variance for October is:
4. Miguez Corporation makes a product with the following standard costs:
The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 September is:
5. Tharaldson Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in June.
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:
Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Variable manufacturing overhead 0.30 hours $2.30 per hourExplanation / Answer
The materials quantity variance is: 1,200 U As per chegg guidelines we answer one question per post. Kindly post remaining questions in next post Standard Actual Particulars Quantity Rate amount Quantity Rate amount Materials 12,000.00 0.60 7,200.00 14,000.00 0.55 7,700.00 Actual output 1,000.00 Materials reqd (1000*12) 12,000.00 DMQV= (SQ-AQ)SP DMQV= (12,000 - 14,000).60 DMQV= 1,200 U
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