Your name: CG 203-006 am 2 structor: Dr. Gaurav Gupta ading: Q1: 30 points, Q2:
ID: 2564614 • Letter: Y
Question
Your name: CG 203-006 am 2 structor: Dr. Gaurav Gupta ading: Q1: 30 points, Q2: 25 points, Q3-Q8: 5 points each, 09:25points. Maximum points 110 te: Show detailed computations for getting full points. Kropf 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. Standard Quantity or Hours per Unit of Output Inputs Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate 7.00 per liter 21.70 per hour 7.4 0.70 liters hours 0.70 hours $ 5.90 per hour company has reported the following actual results for the product for September 9,600 units 75,000 liters Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 562,500 71,050 liters 6,410 hours $ 142,302 $ 34,614 uired: ompute the materials price variance for September. mpute the materials quantity variance for September. mpute the labor rate variance for September mpute the labor efficiency variance for September. mpute the variable overhead rate variance for September. mpute the variable overhead efficiency variance for September.Explanation / Answer
Standard Price
7
Standard Quantity
9600*7.4
71040
Actual Price
562500/75000
7.5
Actual Quantity
71050
Material Price Variance
Actual Quantity (Standard Price - Actual Price)
71050(7 - 7.5)
-35525
35525
Unfavourable
Material Quantity Variance
Standard price (Standard Quantity - Actual Quantity)
7*(71040 - 71050)
-70
70
Unfavourable
Standard Rate
21.7
Standard Hours
9600*0.70
6720
Actual Rate
142302/6410
22.2
Actual Hours
6410
Labour Rate Variance
Actual Hours (Standard Rate - Actual Rate)
6410(21.7 - 22.2)
-3205
3205
Unfavourable
Labour Efficiency Variance
Standard Rate (Standard Hours - Actual Hours)
21.7*(6720 - 6410)
6727
6727
Favourable
Standard Overhead Rate
5.9
Standard Hours
9600*0.70
6720
Actual Overhead Rate
34614/6410
5.4
Actual Hours
6410
Variable overhead Rate Variance
Actual Hours (Standard Overhead Rate - Actual Overhead Rate)
6410(5.90 - 5.4)
3205
3205
Favourable
Labour Overhead Efficiency Variance
Standard Overhead Rate (Standard Hours - Actual Hours)
5.90 *(6720 - 6410)
1829
1829
Favourable
Standard Price
7
Standard Quantity
9600*7.4
71040
Actual Price
562500/75000
7.5
Actual Quantity
71050
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