Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Krop Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on

image text in transcribed
image text in transcribed
Krop 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 8.50 liters 0.60 hours 0.60 hours Standard Price or Rate $ 8.10 per liter $25.70 per hour $ 7.00 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 10,700 units 93,100 liters $771,500 90,960 liters 6,000 hours $160, 302 $ 35,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September c. Compute the labor rate variance for September d. Compute the labor efficiency variance for September e. Compute the variable overhead spending variance for September f. Compute the variable overhead efficiency variance for September (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) indicate the effect of each varianco by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (..zer variance). Input all amounts as positive values.) a b Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance variable overhead spending variance Variable overhead efficiency variance d e f

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

Define promotion.

Answered: 1 week ago

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago