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Gauci Corporation reported the following results concerning this product in November. Actual output2,500unitsRaw materials used in production24,840poundsPurchases of raw materials21,000poundsActual direct labor-hours1,430hoursActual cost of raw
Gauci Corporation reported the following results concerning this product in November.
Actual output2,500unitsRaw materials used in production24,840poundsPurchases of raw materials21,000poundsActual direct labor-hours1,430hoursActual cost of raw materials purchases$210,810 Actual direct labor cost$22,040 Actual variable overhead cost$10,458
Gauci Corporation applies variable overhead based on direct labor hours. The direct materials purchases variance is computed when the materials are purchased.
Instructions:
- Compute the materials quantity variance.
- Compute the materials price variance.
- Compute the labor efficiency variance.
- Compute the labor rate variance.
- Compute the variable overhead efficiency variance.
- Compute the variable overhead rate variance.
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