Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions