all one problem

Class Quest, Inc. uses a standard cost system for its product, Fruta. For the month of June, the company expects to produce 10,000 units of Fruta using 20,000 pounds of material, and 4,000 direct labor hours. The standard price of materiais is $10.00 per pound while the labor standard rate is $15.00 per hour. Variable overhead is assigned to the product on the basis of direct labor hours at the rate of $5.00 per direct labor hour. During June, the company recorded this activity related to production of Fruta: a. The company actually produced 11,000 units of Fruta during June b. Materials of X pounds were purchased at a cost of $157,500. There were 6,000 pounds in beginning inventory of materials: 28,000 pounds were used in production; and at the end of the month, 3,000 pounds of material remained in ending inventory c. The company pold $15.20 per hour for direct labor and paid a total of $59,375 in direct labor cost d. Actual variable manufacturing overhead rate during June was $6.00 per direct labor hour REQUIRED 1: Compute the following variances Material Price Variance Material Quantity Variance Total Material Variance Labor Rate Variance Labor Efficiency Variance Total Labor Variance Variable Overhead Rate Variance Variable Overhead Efficiency Variance Total Variable Overhead Variance 5 REQUIRED 2: What factors might have caused the quantity variance? Select all that apply Machine break downs Wastage of direct materials Poor quality of materials Insufficient training of direct labor employees Theft of direct materials REQUIRED 3: The direct materials were purchased from a new supplier, who is eager to enter into a long-term contract. Using the material varainaces, should the company sign this contract? (Click to select) REQUIRED 4: What other factors, other than the favorableness of the price, might the company want to consider before signing the contract? Financial stability of the vendor Reputation of the vendor 2 Quality control systems of the vendor Length of the contract period Market forecasts on future direct material prices REQUIRED 4: What other factors, other than the favorableness of the price, might the company want to consider before signing the contract? inancial stability of of the vendor Reputation of the vendor ourity control systems of the vendor Length of the contract period Market forecasts on future direct material prices Delivery standard of the vedno 2 Purchase terms from the vendor For example, does the vendor require bulk purchases only