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QUESTION #1 Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct
QUESTION #1 Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 2.0 ounces | $6.00 per ounce | $12.00 |
Direct labor | 0.6 hours | $12.00 per hour | $7.20 |
Variable overhead | 0.6 hours | $4.50 per hour | $2.70 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 6,400 | units |
Actual output | 6,200 | units |
Raw materials used in production | 9,600 | ounces |
Actual direct labor-hours | 3,920 | hours |
Purchases of raw materials | 11,200 | ounces |
Actual price of raw materials | 5.75 | per ounce |
Actual direct labor rate | 11.20 | per hour |
Actual variable overhead rate | 4.20 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. |
The materials price variance for December is: |
$19,200 U
$19,200 F
$2,800 F
$2,800 U
QUESTION #2: Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 3.0 ounces | $8.60 per ounce | $25.80 |
Direct labor | 0.7 hours | $23.00 per hour | $16.10 |
Variable overhead | 0.7 hours | $4.00 per hour | $2.80 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 4,560 | units |
Actual output | 4,360 | units |
Raw materials used in production | 13,330 | ounces |
Actual direct labor-hours | 3,302 | hours |
Purchases of raw materials | 15,170 | ounces |
Actual price of raw materials | $8.40 | per ounce |
Actual direct labor rate | $19.90 | per hour |
Actual variable overhead rate | $4.10 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. |
The variable overhead efficiency variance for December is: |
$1,025 U
$1,000 F
$1,000 U
$1,025 F
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