apters 10,1,12 6 Fortes Inc. has provided the following data concerning one of t
ID: 2413088 • Letter: A
Question
apters 10,1,12 6 Fortes 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 Hours per Unit of Output Price or 6.50 per ounce $23.80 per hour $ 4.80 per hour 0.6 hours 0.6 hours Variable manufaeturing overhead 06 The company has reported the following actual results for the product for April: 6,000 units 54,760 ounces Raw materials purchased Actual cost of raw naterials purchased Raw naterials used in production Actual direct labor-hours Actual direct labor cost $299,360 50,410 ounces 3,270 hours $ 80,810 14,953 Required: a. Compute the materials price variance for April. the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the variable overhead rate variance for April. d efficiency variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U variance). Input all amounts as positive values.) o nouts asiposi vgrborrable, and None'for no eflect ( ro Prey 1of 32 ??? Next >Explanation / Answer
a. material price variance = actual quantity*(actual price-standard price)
= 50410*($299360/54760-$6.5)
=50410*(5.46676 -6.5)
=52085 F
b. Material quantity variance = Standard price * (actual quantity used - [standard quantity per unit * actual production])
= $6.5 * (50410 - [8.4 ounces *6000 units])
= $6.5 * (50410 - 50400)
= $65 U
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