Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required: a. Compute the materials quantity variance. Show your work!! b. Compute the materials price variance. Show your work!! c. Compute the labor efficiency variance.
Required: a. Compute the materials quantity variance. Show your work!! b. Compute the materials price variance. Show your work!! c. Compute the labor efficiency variance. Show your work!! d. Compute the labor rate variance. Show your work!! e. Compute the variable overhead efficiency variance. Show your work!! f. Compute the variable overhead rate variance. Show your work!!
Tomlinson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate 7.4 ounces $8.00 per ounce Direct materials Direct labor Variable overhead 0.3 hours $16.00 per hour $7.00 per hour 0.3 hours The company reported the following results concerning this product in July. Actual output 2,200 units Raw materials used in 16,420 ounces production Purchases of raw materials 17,900 ounces Actual direct labor-hours 720 hours Actual cost of raw materials $141,410 purchases Actual direct labor cost $12,528 Actual variable overhead cost $5,112 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchasedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started