Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer below in full Kowaleski Corporation makes a product with the following standard costs: Standard Quantity Standard Price or Rate or Hours 5.3 grams

Please answer below in full

image text in transcribed

Kowaleski Corporation makes a product with the following standard costs: Standard Quantity Standard Price or Rate or Hours 5.3 grams $8.00 per gram 15.00 0.5 hours $ per hour Direct materials Direct labor Variable overhead 0.5 hours $2.00 per hour In June the company produced 4,600 units using 24,730 grams of the direct material and 2,620 direct labor-hours. During the month the company purchased 24,500 grams of the direct material at a price of $7.80 per gram. The actual direct labor rate was $15.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: Compute the following variances for raw materials and direct labor, assuming that the price variance for materials recognized at point of purchase: (Input all mounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Direct materials quantity variance Direct materials price variance Direct labor efficiency variance Direct labor rate variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions