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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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