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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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