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Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw
Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials (11,000 yards at $11.00 per yard) $ 121,000 Raw materials used 18,000 yards Direct labor costs (10,200 hours at $8.00 per hour) $ 81,600 Actual variable overhead cost $ 84,030 Units produced 12,600 units Standards per unit of product: Raw materials 1.7 yards at $13.00 per yard Direct labor .8 hours at $7.50 per hour Variable overhead $7.00 per direct labor hour Required: Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) a. Direct materials price variance $ ___ b. Direct materials quantity variance $ ____ c. Direct labor rate variance $ ____ d. Direct labor efficiency variance $ ____ e. Variable overhead rate variance $ ____ f. Variable overhead efficiency variance $ _____ drop down menus for each read F, U, or NONE
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