Question
Please show work. Thank you Silmon Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials
Please show work. Thank you
Silmon Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | ||||
Direct materials | 4.5 | grams | $ | 8.00 | per gram |
Direct labor | 0.5 | hours | $ | 15.00 | per hour |
Variable overhead | 0.5 | hours | $ | 3.00 | per hour |
In June the company produced 5,000 units using 23,250 grams of the direct material and 2,540 direct labor-hours. During the month the company purchased 24,900 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 $2.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. |
Required: |
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) |
a. | Direct materials quantity variance | $ | (Click to select)FUNone |
b. | Direct materials price variance | $ | (Click to select)FUNone |
c. | Direct labor efficiency variance | $ | (Click to select)FUNone |
d. | Direct labor rate variance | $ | (Click to select)FUNone |
e. | Variable overhead efficiency variance | $ | (Click to select)FUNone |
f. | Variable overhead rate variance | $ | (Click to select)FUNone |
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