Question
Blomdahl Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Direct materials 5.30 kilos $ 6.20
Blomdahl Corporation makes a product with the following standard costs: |
Inputs | Standard Quantity or Hours | Standard Price or Rate | ||||
Direct materials | 5.30 | kilos | $ | 6.20 | per kilo | |
Direct labor | 0.30 | hours | $ | 22.50 | per hour | |
Variable overhead | 0.30 | hours | $ | 2.20 | per hour | |
The company reported the following results concerning this product in October. |
Actual output | 8,200 | units | |
Raw materials used in production | 45,100 | kilos | |
Actual direct labor-hours | 2,788 | hours | |
Purchases of raw materials | 47,270 | kilos | |
Actual price of raw materials | $ | 5.90 | per kilo |
Actual direct labor rate | $ | 24.00 | per hour |
Actual variable overhead rate | $ | 2.00 | per hour |
The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. |
Required: |
a. | Compute the materials quantity variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
Materials quantity variance | $ (Click to select)NoneUF |
b. | Compute the materials price variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
Materials price variance | $ (Click to select)FUNone |
c. | Compute the labor efficiency variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
Labor efficiency variance | $ (Click to select)UNoneF |
d. | Compute the direct labor rate variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
Labor rate variance | $ (Click to select)NoneUF |
e. | Compute the variable overhead efficiency variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answer to the nearest dollar amount.) |
Variable overhead efficiency variance | $ (Click to select)NoneUF |
f. | Compute the variable overhead rate variance. (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answer to the nearest dollar amount.) |
Variable overhead rate variance | $ (Click to select)UFNone |
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