Question

g Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit Standard Price or of Output Rate 7.70 liters $ 7.30 per liter 0.50 hours $24.70 per hour 0.50 hours $ 6.20 per hour The company has reported the following actual results for the product for September Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 9,900 units 76,500 liters $585,500 76,240 liters 4,650 hours $120,302 $ 23,614 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September e. Compute the variable overhead rate variance for September Compute the variable overhead efficiency variance for September (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (e., zero variance), Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance

Answer 1

* KOOPF Inc has provided - - - co material Poice variance 27050 (6) material quantity Variance 73 CC Labor Role variance 5447 (d) Labor efficiency variance 7410 (el variable overhead Rate variance $15216 Cf variable overhead efficrency varianced 1860 U LF - ו > Explanation: U material price variance: = = CAO X AP - CAO X SP) $5855oo - (76500X 57.30) S70SO U material quantity variance: SPXCAQ -sol = 67.30 ( 76240 - 76230) . S 73U so = 9900 unit x 7.70 ltr $76230] Labor Rate variance = (AHXAR) - CAHX SR). = $120302 - 46 50 X 24.10 S54470 e labor efficiency variance: - SRX CAH-SH) $24.70 X [4650 - 9950) 1410 F - 9900 unit x O-50 hour 49503

e variable overhead oate variance = (AHXAR) -(AHXSR. - = 23614 - ( 4650 X 86.20) = 5 5216 F (f variable overhead efficiency variance: = SR CAH-SH). $6.20 [4650 - 4950] = $ 1860 F ESH = 9900 unit x 0.50 = 4950 Hour