5. Oddo Corporation makes a product with the following standard costs: Standard

Question

5. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.0 ounces $8.20 per ounce $24.60 Direct labor 0.9 hours $24.00 per hour $21.60 Variable overhead 0.9 hours $7.00 per hour $6.30 The company reported the following results concerning this product in December. Originally budgeted output 4,520 units Actual output 4,320 units Raw materials used in production 13,210 ounces Actual direct labor-hours 4,138 hours Purchases of raw materials 15,010 ounces Actual price of raw materials $8.00 per ounce Actual direct labor rate $19.50 per hour Actual variable overhead rate $7.20 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 materials quantity variance for December is:

a. $2,050 U

b$2,000 F

c$2,050 F

d $2,000 U

6. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.0 ounces $12.50 per ounce $37.50 Direct labor 0.7 hours $18.50 per hour $12.95 Variable overhead 0.7 hours $11.00 per hour $7.70 The company reported the following results concerning this product in December. Originally budgeted output 11,600 units Actual output 11,400 units Raw materials used in production 33,640 ounces Actual direct labor-hours 8,180 hours Purchases of raw materials 35,240 ounces Actual price of raw materials 12.25 per ounce Actual direct labor rate 16.95 per hour Actual variable overhead rate 9.20 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 materials price variance for December is:

a. $15,410 U

b $15,410 F

c $8,810 F

d $8,810 U

7. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.0 ounces $8.30 per ounce $33.20 Direct labor 0.7 hours $22.00 per hour $15.40 Variable overhead 0.7 hours $9.00 per hour $6.30 The company reported the following results concerning this product in December. Originally budgeted output 4,530 units Actual output 4,330 units Raw materials used in production 17,620 ounces Actual direct labor-hours 3,331 hours Purchases of raw materials 19,430 ounces Actual price of raw materials $8.10 per ounce Actual direct labor rate $19.60 per hour Actual variable overhead rate $9.10 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 December is:

a, $2,730 U

b. $2,700 F

c. $2,700 U

d. $2,730 F

8. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $20 per hour. In April the company produced 6,950 units using 3,670 direct labor-hours. The actual direct labor cost was $77,070.

The labor efficiency variance for April is:

a $10,000 U

b $10,000 F

c $6,330 F

d $6,330 U

Explanation / Answer

5) Material quantity variance = (4320*3-13210)*8.20 = 2050 U

So answer is a) $2050 U

6) Material price variance = (12.50-12.25)*35240 = 8810 F

So answer is c) $8810 F

7) Variable overhead efficiency variance = (4330*.70-3331)*9 = 2700 U

So answer is c) $2700 U

8) Labour efficiency variance = (6950*.6-3670)*20 = 10000 F

So answer is b) $10000 F

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.