Question
Micro, nv makes a product with the following standard costs: Inputs: Unit of Input Units per item Price or rate Direct Materials: gallons 57 $32/gallon
Micro, nv makes a product with the following standard costs:
Inputs: | Unit of Input | Units per item | Price or rate |
Direct Materials: | gallons | 57 | $32/gallon |
Direct Labor: | direct labor hours | 38 | $24/direct labor hour |
Variable Overhead: | direct labor hours | $34/direct labor hour |
The company reported the following results concerning this product in October.
Actual output: | 749 items |
Raw Materials used: | 41,615 gallons |
Raw Material purchased: | 36,113 gallons |
Actual direct labor hours: | 27,713 hours |
Actual cost of raw materials purchased: | $1,011,164 |
Actual direct labor cost: | $609,686 |
Actual variable overhead cost: | $997,668 |
Micro applies variable overhead on the basis of direct labor hours. The direct material purchases variance is computed when the materials are purchased. What are the following variances? Be sure to note if they are favorable or unfavorable.
Part 1: Direct Material quantity variance:
Part 2: Direct Labor efficiency variance:
Part 3: Direct Material price variance:
Part 4: Direct Labor rate variance:
Need all parts thank you
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