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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
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
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