| | $19,720 U 2.) | Buis Corporation, which makes landing gears, has provided the following data for a recent month: | | | | | | Budgeted production | 1,200 | gears | | Standard machine-hours per gear | 4.7 | machine-hours | | Budgeted supplies cost | $5.30 | per machine-hour | | Actual production | 1,900 | gears | | Actual machine-hours | 9,600 | machine-hours | | Actual supplies cost (total) | $49,622 | | | | | Required: | | Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) | | | | | | Variable overhead rate variance | $ | (Favorable or Un or none) | | Variable overhead efficiency variance | $ | (Favorable or Un or none) | 3.) | Blue Corporation's standards call for 6,000 direct labor-hours to produce 1,500 units of product. During May 1,350 units were produced and the company worked 1,400 direct labor-hours. The standard hours allowed for May production would be: | | | 5,400 hours | | | 6,000 hours | | | 4,650 hours | | | 1,400 hours 4.) | Hurren Corporation makes a product with the following standard costs: | | | Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | | Direct materials | 9.80 grams | $4.00 per gram | $39.20 | | Direct labor | 0.3 hours | $15.00 per hour | $4.50 | | Variable overhead | 0.3 hours | $8.00 per hour | $2.40 | | The company reported the following results concerning this product in June. | | Originally budgeted output | 8,500 | units | | Actual output | 8,600 | units | | Raw materials used in production | 41,400 | grams | | Purchases of raw materials | 48,500 | grams | | Actual direct labor-hours | 710 | hours | | Actual cost of raw materials purchases | $263,490 | | | Actual direct labor cost | $8,353 | | | Actual variable overhead cost | $3,326 | | | The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. | | The labor rate variance for June is: | | | $2,312 U | | | $2,297 U | | | $2,297 F | | | $2,312 F 5.) | Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: | | | Standard Quantity | Standard Price or Rate | Standard Cost | | Direct materials | 2.0 pounds | $3.25 per pound | $6.50 | | Direct labor | 0.5 hours | $7 per hour | $3.5 | | Variable manufacturing overhead | 0.5 hours | $1.50 per hour | $.75 | | During March, the following activity was recorded by the company: | | | | | | | |
