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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
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 laborhours. tableStandard Quantity orInputsHours per Unit of output,Standard Price or RateDirect materials, liters,$ per literDirect labor, hours,$ per hourVariable manufacturing overhead, hours,$ 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 laborhours Actual direct labor cost Actual variable overhead cost units liters $ liters hours $ $ 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 rate variance for September. f Compute the variable overhead efficiency variance for September. Indicate the effect of each variance by selecting F for favorable, for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values. tablea Materials price varianceb Materials quantity variancec Labor rate varianced Labor efficiency variancee Variable overhead rate variancef 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 laborhours.
tableStandard Quantity orInputsHours per Unit of output,Standard Price or RateDirect materials, liters,$ per literDirect labor, hours,$ per hourVariable manufacturing overhead, hours,$ 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 laborhours
Actual direct labor cost
Actual variable overhead cost
units
liters
$
liters
hours
$
$
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 rate variance for September.
f Compute the variable overhead efficiency variance for September.
Indicate the effect of each variance by selecting F for favorable, for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
tablea Materials price varianceb Materials quantity variancec Labor rate varianced Labor efficiency variancee Variable overhead rate variancef Variable overhead efficiency variance
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