Question
SAKELARIS CORPORATION MAKES A PRODUCT WITH THE FOLLOWING STANDARD COSTS: STANDARD QUANTITY OR HOURS STANDARD PRICE OR RATE DIRECT MATERIALS 8.6 KILOS $6.00 PER KILO
SAKELARIS CORPORATION MAKES A PRODUCT WITH THE FOLLOWING STANDARD COSTS:
STANDARD QUANTITY OR HOURS STANDARD PRICE OR RATE
DIRECT MATERIALS 8.6 KILOS $6.00 PER KILO
DIRECT LABOR 0.4 HOURS $11.00 PER HOUR
VARIABLE OVERHEAD 0.4 HOURS $5.00 PER HOUR
THE COMPANY REPORTED THE FOLLOWING RESULTS CONCERNING THIS PRODUCT IN AUGUST.
ACTUAL OUTPUT 8,400 UNITS
RAW MATERIALS USED IN PRODUCTION 71,750 KILOS
PURCHASES OF RAW MATERIALS 76,900 KILOS
ACTUAL DIRECT LABOR-HOURS 3,320 HOURS
ACTUAL COST OF RAW MATERIALS PURCHASES $469,090
ACTUAL DIRECT LABOR COST $35,524
ACTUAL VARIABLE OVERHEAD COST $17,928
THE COMPANY APPLIES VARIABLE OVERHEAD ON THE BASIS OF DIRECT LABOR-HOURS. THE DIRECT MATERIALS PURCHASES VARIANCE IS COMPUTE WHEN THE MATERIALS PURCHASE VARIANCE IS COMPUTED WHEN THE MATERIALS ARE PURCHASED. LABEL EACH VARIANCE AS FAVORABLE (F) OR UNFAVORABLE (U).
REQUIRED.
A. COMPUTE THE MATERIALS QUANTITY VARIANCE.
B. COMPUTE THE MATERIALS PRICE VARIANCE.
C. COMPUTE THE VARIABLE OVERHEARD EFFICIENCY VARIANCE.
D. COMPUT THE VARIABLE OVERHEAD RATE VARIANCE.
PLEASE SHOW ALL WORK.
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