Can someone help me out with this please? Thank you!! Silmon Corporation makes a

Question

Can someone help me out with this please? Thank you!!

Silmon Corporation makes a product with the following standard costs:

In June the company produced 4,600 units using 24,730 grams of the direct material and 2,620 direct labor-hours. During the month the company purchased 24,500 grams of the direct material at a price of $7.80 per gram. The actual direct labor rate was $15.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Silmon Corporation makes a product with the following standard costs:

Explanation / Answer

SQ / SH SR AQ / AH AR Direct Materials 24380 grams      8.00 per gram 24730 grams      7.80 per gram Direct Labor 2300 hrs    15.00 per hr 2620 hrs    15.60 per hr Variable Overhead 2300 hrs      2.00 per hr 2620 hrs      1.90 per hr Material quantity Variance = (SQ - AQ) X SR Material quantity Variance = (24380 - 24730) X $8 Material quantity Variance = $2800(U) Material Price Variance = (SR - AR) X AQ Material Price Variance = ($8 - $7.80) X 24500 Material Price Variance = $4900 (F) Labour Efficiency Variance = (SH - AH) X SR Labour Efficiency Variance = (2300-2620) X $15 Labour Efficiency Variance = $4800 (U) Labour Rate Variance = (SR - AR) X AH Labour Rate Variance = ($15 - $15.60) X 2620 DLH Labour Rate Variance = $1572 (F) Variable Overhead Efficiency Variance = (SH - AH) X SR Variable Overhead Efficiency Variance = (2300 - 2620) X $2 Variable Overhead Efficiency Variance = $640 (U) Variable Overhead Rate Variance = (SR - AR) X AH Variable Overhead Rate Variance = ($2 - $1.90) X 2620 Mach Hrs Variable Overhead Rate Variance = $262 (F)

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