Question
Silmon Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 4.2 grams $ 5.00 per
Silmon Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | ||||
Direct materials | 4.2 | grams | $ | 5.00 | per gram |
Direct labor | 0.5 | hours | $ | 12.00 | per hour |
Variable overhead | 0.5 | hours | $ | 2.00 | per hour |
In June the company produced 4,700 units using 20,990 grams of the direct material and 2,510 direct labor-hours. During the month the company purchased 24,600 grams of the direct material at a price of $4.80 per gram. The actual direct labor rate was $12.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. |
Required: | ||||||||||||||||||||||
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
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