Kropf Incorporated has provided the following data concerning one of the products in its standard cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66580d0c6a49f_54066580d0c661af.jpg)
Transcribed Image Text:
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 7.70 liters Standard Price or Rate 0.50 hours $ 7.30 per liter $ 24.70 per hour $ 6.20 per hour 0.50 hours 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. 9,900 units 76,500 liters $ 585,500 76,240 liters 4,650 hours $ 120,302 b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. $ 23,614 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 variance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance f. Variable overhead efficiency variance 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 7.70 liters Standard Price or Rate 0.50 hours $ 7.30 per liter $ 24.70 per hour $ 6.20 per hour 0.50 hours 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. 9,900 units 76,500 liters $ 585,500 76,240 liters 4,650 hours $ 120,302 b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. $ 23,614 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 variance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance f. Variable overhead efficiency variance
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Prove that the curl of a gradient is always zero. Check it for function (b) in Prob. 1.11.
-
Cheatham and Howe is a law firm that is initiating an activity-based costing sys- tem. Jim Cheatham, the senior partner and strong supporter of ABC, has prepared the following list of activities...
-
Consider a numerical example using the Solow growth model. Suppose that F(K, N) = K0.5 N0.5, with d = 0.1, s = 0.2, n = 0.01, and z = 1, and take a period to be a year. (a) Determine capital per...
-
TB Problem Qu. 13-187 (Algo) Mcniff Corporation makes a range... Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $25 per direct labor- hour, which was...
-
Find second order derivative of the function f(t) = In [In (t)] at t = e 1 e2 1 e2 e2 O 1
-
(i) Who is likely to carry out a business performance review? (ii) Describe what may be required from such reviews giving some examples from different industries and differing perspectives.
-
Explain what is meant by insolvency and outline the responsibilities of receivers appointed to insolvent companies.
-
In what ways may the performance review process be used to anticipate and react to change?
-
(i) Why does profit continue to be the preferred basis for evaluation of the financial performance of a business? (ii) In what ways can cash flow provide a better basis for performance evaluation,...
-
Why should we be so careful when we try to compare the income statement of a limited company with a similar business in the same industry?
-
As a way of experiencing the Humanities beyond your classroom, computer, and textbook, you are asked to do a certain type of cultural activity that fits well with our course and then report on your...
-
Your company, Kitchen Works, is employing the SDLC for its new information system. The company is currently performing a number of feasibility stud- ies, including the economic feasibility study. A...
-
Consider the following dialogue between a systems professional, Joe Pugh, and a manager of a department targeted for a new information system, Lars Meyer: Pugh: The way to go about the analysis is to...
-
Listed below are some probability estimates of the costs and benefits associated with two competing projects. a. Compute the net present value of each alterna- tive. Round the cost projections to the...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App