Oddo Corporation makes a product with the following standard costs: Direct mater

Question

Oddo Corporation makes a product with the following standard costs: Direct materials Direct labor Varlable overhead Standard Quantity Standard Price or Standard Cost Rate $760 per ounce $21.00 per hour or Hours 4.0 ounces 0.6 hours 0.6 hours Per Unit $30.40 $12.60 $4.20 $700 per hour The company reported the following results concerning this product in December. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 4,460 unlts 4,260 units 17410 ounces 2,926 hours 19,150 ounces S740 per ounce $18.90 per hour $7.:20 per hour The compañy applies variable overhead on the basls of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity varlance for December is: O $2.812 U O $2.738 F O $2,812 F O $2738 u

Explanation / Answer

1) Calculation of Material quantity variance :

Material quantity variance = Standard price * (Standard quantity - Actual quantity)

= $7.60 * ((4,260 * 4) - 17,410)

= $7.60 * (17,040 - 17,410)

= ($2,812) Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.