Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

Kropf 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 labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 8.10 liters 0.40 hours 0.40 hours Standard Price on Rate $7.70 per liter $28.70 per hour $6.60 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 Required: a. Compute the materials price variance for September. 10,300 units 84,700 liters $ 667,500 83,460 liters: 3,840 hours $ 115,302 b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. $ 20,314 e. Compute the variable overhead rate 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 ariance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate variance abor efficiency variance Prou

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