Question
1. Devoto Inc. has provided the following data concerning one of the products in its standard cost system. Inputs Standard Quantity or Hours per Unit
1. Devoto Inc. has provided the following data concerning one of the products in its standard cost system.
Inputs | Standard Quantity or Hours per Unit of Output | Standard Price or Rate |
Direct materials | 6.6 grams | $7.70 per gram |
The company has reported the following actual results for the product for June:
Actual output | 9,200 | units | |
Raw materials purchased | 64,500 | grams | |
Actual cost of raw materials purchased | $ | 548,250 | |
Raw materials used in production | 60,710 | grams | |
The raw materials quantity variance for the month is closest to:
$77 U
$85 F
$85 U
$77 F
2. Valera Corporation makes a product with the following standards for labor and variable overhead:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||||
Direct labor | 0.4 | hours | $ | 21.00 | per hour | $ | 8.40 | ||||
Variable overhead | 0.4 | hours | $ | 6.00 | per hour | $ | 2.40 | ||||
The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead efficiency variance for July is:
$183 F
$180 U
$180 F
$183 U
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