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Mandas Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on
Mandas 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 Standard Quantity of Output Standard Price or Rate or Hours per Unit Direct materials 7.80 liters $ 7.40 per liter Direct labor 0.40 hours $25.70 per hour Variable manufacturing overhead 0.40 hours $6.30 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: 10,000 units 78,500 liters $586,395 78,020 liters 3,800 hours $100,320 S 20,330 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. 1. 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)
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