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QUESTION 7 Fastic Corporation makes a product with the following standard costs: Standard Quantity Standard Price Inputs.............. or Hours or Rate Direct materials ......... 6.9
QUESTION 7 Fastic Corporation makes a product with the following standard costs: Standard Quantity Standard Price Inputs.............. or Hours or Rate Direct materials ......... 6.9 liters $5.00 per liter Direct labor ......... 0.3 hours $17.00 per hour Variable overhead ...... 0.3 hours $6.00 per hour Standard Cost Per Unit $34.50 $5.10 $1.80 The company reported the following results concerning this product in August Originally budgeted output ............ Actual output.... Raw materials used in production....... Actual direct labor-hours ............. Purchases of raw materials................. Actual price of raw materials. ............ Actual direct labor rate.. ....................... Actual variable overhead rate.............. 8,600 units 8.400 units 58,330 liters 2.310 hours 62,500 liters $4.90 per liter $17.10 per hour $5.50 per hour The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the direct labor rate variance. e. Compute the variable overhead efficiency variance, f. Compute the variable overhead rate variance. Please show all work
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