Computation of Variances and Other Missing Data The following data for O\'Keefe

Question

Computation of Variances and Other Missing Data
The following data for O'Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted. Fill in the missing amounts.

Direct materials (all materials purchased were used during period)

Standard cost per unit: _____ pounds at 2.88 per pound

Total actual cost_____ pounds costing $5,673

Standard cost allowed for units produced: $5,760

Materials price variance: ______

Materials quantity variance: $144 U

Direct labor

Standard cost: 2 hours at $7.00

Actual cost per hour: $7.25

Total actual cost: _________

Labor rate variance: _________

Labor efficiency variance: $140 U

Variable overhead

Standard costs: ______ hours at $4.00 per direct labor hour

Actual cost: $3,700

Variable overhead spending variance: ______

Variable overhead efficiency variance: ______

Direct materials (all materials purchased were used during period)

Standard cost per unit: _____ pounds at 2.88 per pound

Total actual cost_____ pounds costing $5,673

Standard cost allowed for units produced: $5,760

Materials price variance: ______

Materials quantity variance: $144 U

Direct labor

Standard cost: 2 hours at $7.00

Actual cost per hour: $7.25

Total actual cost: _________

Labor rate variance: _________

Labor efficiency variance: $140 U

Variable overhead

Standard costs: ______ hours at $4.00 per direct labor hour

Actual cost: $3,700

Variable overhead spending variance: ______

Variable overhead efficiency variance: ______

Explanation / Answer

material SR 2.88 material quantity variance = SR(SQ-AQ) AR 2.77 ie-144=2.88(2000-AQ) AQ 2050 AQ = 2050 SQ 2000 material price variance = SQ(SR-AR) labor ie= 2000(2.88-2.77) SR 14 ie= 220 (F) AR 14.65 AH 1010 labor efficiency variance = SR(SH-AH) SH 1000 ie -140 = 14(1000-AQ) AH = 1010 variable overhead SR 8 variable efficiency variance = SR(SH-AH) AR 3.7 ie 8 (1000-1010) AH 1010 ie= -80 (U) SH 1000 variable rate variance = SH(SR-AR) ie= 1000(8-3.7) ie= 4300 (F)

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