Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fortes Inc. has provided the following data concerning one of the products In Its standard cost system. Variable manufacturing overhead is applied to products on
Fortes Inc. has provided the following data concerning one of the products In Its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours Standard Price or Rate $ 8.10 per ounce $24.70 per hour $ 6.40 per hour The company has reported the following actual results for the product for Aprit Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual diseat Ibex-hour Actual direct labor cost Actual variable overhead cost 6,500 units 62,350 ounces $386,210 52, 020 ounces 9,450 kouza $ 88,880 $ 21, 295 Required: a. Compute the materials price variance for April. b. Compute the materials quantity varlance for April. C. Compute the labor rate varlance for April. d. Compute the labor effidency variance for Apri. e. Compute the variable overhead rate variance for April. f. Compute the variable overhead efficiency variance for April. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance Labor rate variance d. Labor efficiency variance Variable overhead rate variance f. Variable overhead efficiency variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started