Question
2. Epley Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 pounds $7.00 per
2. Epley Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | |
Direct materials | 2.0 pounds | $7.00 per pound |
Direct labor | 0.4 hours | $12.00 per hour |
Variable overhead | 0.4 hours | $2.00 per hour |
In July the company produced 4,600 units using 10,100 pounds of the direct material and 2,080 direct labor-hours. During the month, the company purchased 10,670 pounds of the direct material at a cost of $76,550. The actual direct labor cost was $38,258 and the actual variable overhead cost was $11,959. |
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 quantity variance for July is: $1,720 U |
$1,860 F
$6,300 U
$1,720 F
3. Epley Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | |
Direct materials | 4.0 pounds | $3.5 per pound |
Direct labor | 0.8 hours | $20.00 per hour |
Variable overhead | 0.8 hours | $9.00 per hour |
In July the company produced 3,310 units using 13,240 pounds of the direct material and 2,768 direct labor-hours. During the month, the company purchased 14,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $54,960 and the actual variable overhead cost was $23,860. |
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 July is: |
$400 F
$400 U
$2,000 U
$2,000 F
4. Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: |
Standard Quantity | Standard Price or Rate | Standard Cost | |
Direct materials | 2.5 pounds | $5.00 per pound | $12.50 |
Direct labor | 0.6 hours | $14 per hour | $8.4 |
Variable manufacturing overhead | 0.6 hours | $3.25 per hour | $1.95 |
During March, the following activity was recorded by the company: |
The company produced 4,600 units during the month. |
A total of 15,000 pounds of material were purchased at a cost of $42,000. |
There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,000 pounds of material remained in the warehouse. |
During March, 2,960 direct labor-hours were worked at a rate of $14.50 per hour. |
Variable manufacturing overhead costs during March totaled $5,972. |
The direct materials purchases variance is computed when the materials are purchased. |
The materials price variance for March is: |
$33,000 U
$23,500 F
$23,500 U
$33,000 F
5.
Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 4.0 ounces | $7.60 per ounce | $30.40 |
Direct labor | 0.6 hours | $21.00 per hour | $12.60 |
Variable overhead | 0.6 hours | $7.00 per hour | $4.20 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 4,460 | units |
Actual output | 4,260 | units |
Raw materials used in production | 17,410 | ounces |
Actual direct labor-hours | 2,926 | hours |
Purchases of raw materials | 19,150 | ounces |
Actual price of raw materials | $7.40 | per ounce |
Actual direct labor rate | $18.90 | per hour |
Actual variable overhead rate | $7.20 | per hour |
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 quantity variance for December is: |
$2,812 U
$2,738 F
$2,812 F
$2,738 U
6. Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 3.0 ounces | $7.50 per ounce | $22.50 |
Direct labor | 0.6 hours | $13.50 per hour | $8.10 |
Variable overhead | 0.6 hours | $6.00 per hour | $3.60 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 7,600 | units |
Actual output | 7,400 | units |
Raw materials used in production | 22,040 | ounces |
Actual direct labor-hours | 4,640 | hours |
Purchases of raw materials | 23,640 | ounces |
Actual price of raw materials | 7.25 | per ounce |
Actual direct labor rate | 12.10 | per hour |
Actual variable overhead rate | 5.10 | per hour |
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 December is: |
$6,710 U
$6,710 F
$5,910 F
$5,910 U
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