Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours...

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Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours 8.6 kilos 0.4 hours Standard Price or Rate $ 6.00 per kilo $ 11.00 per hour $5.00 per hour Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production 8,400 units 71,750 kilos 76,900 kilos Purchases of raw materials 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 computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. Sakelaris Corporation makes a product with the following standard costs: Direct materials Standard Quantity or Hours 8.6 kilos 0.4 hours Standard Price or Rate $ 6.00 per kilo $ 11.00 per hour $5.00 per hour Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production 8,400 units 71,750 kilos 76,900 kilos Purchases of raw materials 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 computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

Answer rating: 100% (QA)

To compute the variances we will use the following formulas a Materials Quantity Variance Materials Quantity Variance Standard Quantity Actual Quantity Standard Price b Materials Price Variance Materi... View the full answer