Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed

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 (14,000 yards at $14.00 per yard) $ 196,000 Raw materials used 14,000 yards Direct labor costs (10,700 hours at $11.00 per hour) $ 117,700 Actual variable overhead cost $ 84,200 Units produced 13,100 units Standards per unit of product: Raw materials Direct labor Variable overhead 1.4 yards at $16.00 per yard 80 hours at $10.50 per hour $7.00 per direct labor hour Required: Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" 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 (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions