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Help Save & Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied
Help Save & Kropf 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 7.50 liters 0.50 hours 0.50 hours Standard Price or Rate $ 7.10 per liter $22.70 per hour $ 6.00 per hour The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 9,700 units 75,100 liters $563,500 72,770 liters 4,600 hours $110, 302 $ 23,414 Required: a. Compute the materials price variance for September b. Compute the materials quantity variance for September 4 of 12 Next >
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