Question
Blomdahl Corporation makes a product with the following standard costs: Inputs Standard Quantity/Hours Standard Price/Rate Direct Materials 5.2 Kilos $6.00 per Kilo Direct Labor 0.3
Blomdahl Corporation makes a product with the following standard costs: Inputs Standard Quantity/Hours Standard Price/Rate
Direct Materials 5.2 Kilos $6.00 per Kilo
Direct Labor 0.3 Hours $22.00 per hour
Variable Overhead 0.3 Hour $2.00 per hour The company reported the following results concerning this product in October.
Actual Output | 8,100 | units | |
Purchase of raw materials | 46,700 | kilos | |
Actual direct labor-hours | 2,570 | hours | |
Raw materials used in production | 43,130 | kilos | |
Cost of raw materials | $294,210 | Total | |
Cost of direct labor | $53,970 | Total | |
Actual variable overhead rate | $1.90 | per hour |
The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required (Answers should not include commas nor negative signs. Answers should be in the format 4000 F or 4000 U):
. Compute the materials quantity variance.
. Compute the materials price variance.
. Compute the labor efficiency variance.
. Compute the direct labor rate variance.
. Compute the variable overhead efficiency variance.
. Compute the variable overhead rate variance.
a. Assum e that only one product is being sold in each of the following situations fi in the m s ng i form at o n Dont inc ide conn asm answersalne at we use Case 1 Units Sold 5000 7500 Sales $250,000 $150,000 Variable Expenses $112,500 Fixed Expenses S125,000 Net Income (LOSS) (S12,500) Contribution Margin Per Unit S35 a. Assume that more than one product is being sold in each of the following situations (fill in the missing information). Answers should not include commas, for negative numbers use "O" Case Case 2 Sales $220,000 $595,000 Variable Expenses S238,000 Fixed Expenses S207,000 Net Operating Income (Loss) SO Contribution Margin Ratio (percent) 45%
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