1. Gilder Corporation makes a product with the following standard costs: The com

Question

1. Gilder Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in June:

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

2. Ortman Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in May:

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for May is:

3. Fruchter Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

The throughput time was:

4. Cabal Products is a division of a major corporation. Last year the division had total sales of $13,143,500, net operating income of $661,540, and average operating assets of $4,850,000. The company's minimum required rate of return is 13%.

The division's margin is closest to:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.70 grams $8.00 per gram $61.60 Direct labor 0.50 hours $26.00 per hour $ 13.00 Variable overhead 0.50 hours $ 6.00 per hour $ 3.00

Explanation / Answer

Solution 1:

Materials price variance for June is

Material Price Variance Actual Price Standard Price AP-SP Actual Quantity Variance (AP-SP)*Actual Qty 7.60 8.00 ($0.40) 37,920 -15,170.00 Favourable

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