1. Devoto Inc. has provided the following data concerning one of the products in

Question

1. Devoto Inc. has provided the following data concerning one of the products in its standard cost system.

The company has reported the following actual results for the product for June:

The raw materials quantity variance for the month is closest to:

$77 U

$85 F

$85 U

$77 F

2. Valera Corporation makes a product with the following standards for labor and variable overhead:

The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.

The variable overhead efficiency variance for July is:

$183 F

$180 U

$180 F

$183 U

Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 6.6 grams $7.70 per gram

Explanation / Answer

1 Raw materials quantity variance = 7.7*(60710-9200*6.6)= $77 F 2 Variable overhead efficiency variance = 6*(2130-5400*0.4)= $180 F

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