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Doby Corporation makes a product with the following standard costs: In July the company produced 5 , 2 0 0 units using 1 4 ,
Doby Corporation makes a product with the following standard costs: In July the company produced units using ounces of the direct material and direct laborhours. During the month the company purchased ounces of the direct material at a price of $ per ounce. The actual direct labor rate was $ per hour and the actual variable overhead rate was $ per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct laborhours. Required: a Compute the materials quantity variance. b Compute the materials price variance. c Compute the labor efficiency variance. d Compute the labor rate variance. e Compute the variable overhead efficiency variance. f Compute the variable overhead rate variance. Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Doby Corporation makes a product with the following standard costs:
In July the company produced units using ounces of the direct material and direct laborhours. During the month
the company purchased ounces of the direct material at a price of $ per ounce. The actual direct labor rate was $ per
hour and the actual variable overhead rate was $ per hour. The materials price variance is computed when materials are
purchased. Variable overhead is applied on the basis of direct laborhours.
Required:
a Compute the materials quantity variance.
b Compute the materials price variance.
c Compute the labor efficiency variance.
d Compute the labor rate variance.
e Compute the variable overhead efficiency variance.
f Compute the variable overhead rate variance.
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero
variance Input all amounts as positive values.
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