Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

please help im trying to study!! Comprehensive exercise to calculate variances: Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours

image text in transcribed
please help im trying to study!!
Comprehensive exercise to calculate variances: Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials... 7.6 grams $6.00 per gram $45.60 Direct labor. 0.1 hours $16.00 per hour $1.60 Variable overhead...... 0.1 hours $6.00 per hour $0.60 The company reported the following results concerning this product in June. Originally budgeted output........ 5,400 units Actual output ......... 5,500 units Raw materials used in production 39,200 grams Purchases of raw materials. 44,100 grams Actual direct labor-hours........ 510 hours Actual cost of raw materials purchases..... $260,190 Actual direct labor cost....... $7.803 Actual variable overhead cost.... $2,754 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. a. Compute the materials quantity variance. b. Compute the materials price variance. C. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

9780135811603

Students also viewed these Accounting questions