Question
This was posted earlier by me, do not copy and paste the answer that's already on here please, they did not compute it correctly/format it
This was posted earlier by me, do not copy and paste the answer that's already on here please, they did not compute it correctly/format it correctly
Galeazzi Corporation makes a product with the following standard costs:
|
| Standard Quantity or Hours | Standard Price or Rate |
| Direct materials.......... | 3.1 pounds | $6.00 per pound |
| Direct labor................ | 0.8 hours | $18.00 per hour |
| Variable overhead...... | 0.8 hours | $6.00 per hour |
In October the company produced 3,000 units using
8,380 pounds of the direct material and 2,610 direct labor-hours. During the month, the company purchased 9,500 pounds of the direct material at a total cost of $55,100. The actual direct labor cost for the month was $48,546 and the actual variable overhead cost was $16,965. 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.
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