Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

could you double check my work? Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials

could you double check my work?

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:image text in transcribed

Talec Corporation makes a product with the following standard costs Standard Quantity Standard Price or Hours or Rate Direct materials 5.0 grams 5.00 per gram 0.5 hours 12.00 per hour Direct labor 0.5 hours 2.00 per hour Variable overhead In June the company produced 4,300 units using 22,750 grams of the direct material and 2,590 direct labor- hours. During the month the company purchased 24,200 grams ofthe direct material at a price of $4.80 per gram. The actual direct labor rate was $12.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. 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). Omit the sign in your response a. Direct materials quantity variance 6250 U b. Direct materials price variance 4840 F 5280 U c. Direct labor efficiency variance 1544 U d. Direct labor rate variance e. Variable overhead efficiency variance 880 U f. Variable overhead rate variance 259 F

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

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago