Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Materials price variances is calculated on material purchased

Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Materials price variances is calculated on material purchased and materials quantity is based on Material used in production. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs

Standard Quantity or Hours per Unit of Output

Standard Price or Rate

Direct materials

8.7

ounces

$

6.80

per ounce

Direct labor

0.6

hours

$

28.70

per hour

Variable manufacturing overhead

0.60

hours

$

5.10

per hour

The company has reported the following actual results for the product for April:

Actual output

6300

units

Raw materials purchased

48,900

ounces

Actual cost of raw materials purchased

$

316,540

Raw materials used in production

54,840

ounces

Actual direct labor-hours

3530

hours

Actual direct labor cost

$

105,850

Actual variable overhead cost

$

17,090

Required:

     Enter all numbers as positive and rounded to the nearest dollar

Materials price variance

$

Materials quantity variance

$

Labor rate variance

$

Labor efficiency variance

$

Variable overhead rate variance

$

Variable overhead efficiency variance

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

1. Define emotions.

Answered: 1 week ago

Question

9. 3. Explain how cultures regulate basic emotions.

Answered: 1 week ago