Question

1.

Miguez Corporation makes a product with the following standard costs: 

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	2.7 liters	$7.40 per liter	$19.98
Direct labor	0.5 hours	$26.00 per hour	$13.00
Variable overhead	0.5 hours	$2.40 per hour	$1.20

The company budgeted for production of 3,000 units in September, but actual production was 2,900 units. The company used 5,840 liters of direct material and 1,720 direct labor-hours to produce this output. The company purchased 6,200 liters of the direct material at $7.60 per liter. The actual direct labor rate was $28.10 per hour and the actual variable overhead rate was $2.20 per hour. 

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. 

The variable overhead rate variance for September is:

2.

Kartman Corporation makes a product with the following standard costs: 

	Standard Quantity or Hours	Standard Price or Rate	Standard cost Per Unit
Direct materials	6.6 pounds	$7.10 per pound	$46.86
Direct labor	0.5 hours	$25.00 per hour	$12.50
Variable overhead	0.5 hours	$4.10 per hour	$2.05

In June the company's budgeted production was 3,500 units but the actual production was 3,600 units. The company used 22,250 pounds of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 25,500 pounds of the direct material at a cost of $171,180. The actual direct labor cost was $57,121 and the actual variable overhead cost was $9,031. 

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. 

The variable overhead rate variance for June is:

3.

Turrubiates Corporation makes a product that uses a material with the following standards: 

Standard quantity    7.4 liters per unit 

Standard price         $ 1.90 per liter

Standard cost          $14.06 per unit 

 The company budgeted for production of 3,200 units in April, but actual production was 3,300 units. The company used 25,000 liters of direct material to produce this output. The company purchased 19,500 liters of the direct material at $2.0 per liter. The direct materials purchases variance is computed when the materials are purchased. 

The materials quantity variance for April is:

Answer 1