Question
#14 Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.5 kilos $ 6.00
#14
Handerson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | ||||||||||
Direct materials | 8.5 | kilos | $ | 6.00 | per kilo | ||||||
Direct labor | 0.4 | hours | $ | 20.00 | per hour | ||||||
Variable overhead | 0.4 | hours | $ | 6.00 | per hour | ||||||
The company reported the following results concerning this product in August.
Actual output | 3,200 | units | |
Raw materials used in production | 29,030 | kilos | |
Purchases of raw materials | 31,600 | kilos | |
Actual direct labor-hours | 1,160 | hours | |
Actual cost of raw materials purchases | $ | 195,920 | |
Actual direct labor cost | $ | 22,736 | |
Actual variable overhead cost | $ | 7,540 | |
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 labor rate variance for August is:
Multiple Choice
$512 U
$512 F
$464 U
$464 F
#15
Kartman Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
Direct materials | 6.5 | pounds | $ | 7.00 | per pound | $ | 45.50 | ||
Direct labor | 0.6 | hours | $ | 24.00 | per hour | $ | 14.40 | ||
Variable overhead | 0.6 | hours | $ | 4.00 | per hour | $ | 2.40 | ||
In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
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 June is:
Multiple Choice
$210 U
$210 F
$229 F
$229 U
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