Question
Schalger corporation makes a product with the following standard costs. Inputs------------------ Standard Quantity or hours Standard Price or rate Direct Materials-------------- 7.8 Kilos $1.00 per
Schalger corporation makes a product with the following standard costs.
Inputs------------------ Standard Quantity or hours Standard Price or rate
Direct Materials-------------- 7.8 Kilos $1.00 per kilo
Direct Labor------------------- 0.4 Hours $18.00 per hour
Variable Overhead----------- 0.4 Hours $3.00 per hour
The company reported the following results concerning this product in August.
Actual output----------------------------- 8500 units
Raw materials used in production--------------- 65,550 Kilos
Purchases of raw materials----------------- 69,000 kilos
Actual Direct labor-hours--------------- 3,410 hours
Actual cost of raw materials purchases---------- $75,900
Actual Direct Labor cost------------------ $ 66, 495
Actual variable overhead cost ----------- $ 9,889
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Compute the materials quantity variance.
Compute the materials price variance.
Compute the labor efficiency variance.
Compute the direct labor rate variance.
Compute the variable overhead efficiency variance.
Compute the variable overhead rate variance.
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