Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters $7.00 per liters
Landram Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | |
Direct materials | 2.0 liters | $7.00 per liters |
Direct labor | 0.9 hours | $15.00 per hour |
Variable overhead | 0.9 hours | $5.00 per hour |
The company produced 4,600 units in April using 10,270 liters of direct material and 2,250 direct labor-hours. During the month, the company purchased 10,840 liters of the direct material at $7.25. per liter. The actual direct labor rate was $15.50 per hour and the actual variable overhead rate was $4.90 per hour. |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. |
The materials quantity variance for April is: |
$7,490 U
$7,758 U
$7,758 F
$7,490 F
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started