ml Kropf Inc. has provided the fo the basis of direct labor-hours. dota c g one

Question

ml Kropf Inc. has provided the fo the basis of direct labor-hours. dota c g one of the products in its standard cost system. Variable uring overhead is applied to products on Standard Quantity or Hours per Unit of Output Standard Price or Rate 7.88 per liter $21.78 per hour $ 5.98 per hour 6Inputs Direct materials Direct labor Variable manufacturing overhead 7.4 liters e.78 hours e.78 hours The company has reported the following actual results for the product for September: 9,600 units 75,eee liters Raw materials purchased $562,5e0 71,05 liters 6,41e hours Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost $142,302 34,614 a. Compute the materials price variance for September b. Compute the materials quantity varlance for September c. Compute the labor rate varlance for September. This question will be sent to your instructor for grading

Explanation / Answer

1) material price variance = (7*75000-562500) = 37500 U

2) Material quantity variance = (9600*7.4-71050)*7 = 70 U

3) Labour rate variance = (21.70*6410-142302) = 3205 U

4) Labour efficiency variance = (9600*.70-6410)*21.70 = 6727 F

5) Variable overhead rate variance = (5.9*6410-34614) = 3205 F

6) Variable overhead efficiency variance = (9600*.70-6410)*5.90 = 1829 F

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