Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson,

4th ISA Edition

1844806782, 9781844806782

More Books

Students also viewed these Accounting questions