Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on
Fortes Incorporated 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 laborhours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials ounces $ per ounce Direct labor hours $ per hour Variable manufacturing overhead hours $ per hour The company has reported the following actual results for the product for April: Actual output units Raw materials purchased ounces Actual cost of raw materials purchased $ Raw materials used in production ounces Actual direct laborhours hours Actual direct labor cost $ Actual variable overhead cost $ Required: a Compute the materials price variance for April. b Compute the materials quantity variance for April. c Compute the labor rate variance for April. d Compute the labor efficiency variance for April. e Compute the variable overhead rate variance for April. f Compute the variable overhead efficiency variance for April. 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.
Fortes Incorporated 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 laborhours.
Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate
Direct materials ounces $ per ounce
Direct labor hours $ per hour
Variable manufacturing overhead hours $ per hour
The company has reported the following actual results for the product for April:
Actual output units
Raw materials purchased ounces
Actual cost of raw materials purchased $
Raw materials used in production ounces
Actual direct laborhours hours
Actual direct labor cost $
Actual variable overhead cost $
Required:
a Compute the materials price variance for April.
b Compute the materials quantity variance for April.
c Compute the labor rate variance for April.
d Compute the labor efficiency variance for April.
e Compute the variable overhead rate variance for April.
f Compute the variable overhead efficiency variance for April.
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started