Question

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: Standard Quantity 7.0 liters; Standard Price $7.30 per liter Direct labor: Standard Quantity 0.70 hours; Standard Price $24.70 per hour Variable manufacturing overhead: Standard Quantity 0.70 hours; Standard Price $6.20 per hour The company has reported the following actual results for the product for September: Actual output: 1,900 units Raw materials purchased: 14,500 liters Actual cost of raw materials purchased: $103,675 Raw materials used in production: 13,240 liters Actual direct labor hours: 1,260 hours Actual direct labor cost: $32,302 Actual variable overhead cost: $8,614 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. f. 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 (i.e, zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance

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: Standard Quantity 7.0 liters; Standard Price $7.30 per liter
Direct labor: Standard Quantity 0.70 hours; Standard Price $24.70 per hour
Variable manufacturing overhead: Standard Quantity 0.70 hours; Standard Price $6.20 per hour

The company has reported the following actual results for the product for September:
Actual output: 1,900 units
Raw materials purchased: 14,500 liters
Actual cost of raw materials purchased: $103,675
Raw materials used in production: 13,240 liters
Actual direct labor hours: 1,260 hours
Actual direct labor cost: $32,302
Actual variable overhead cost: $8,614

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.
f. 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 (i.e, zero variance). Input all amounts as positive values.)

Materials price variance
Materials quantity variance
Labor rate variance
Labor efficiency variance
Variable overhead rate variance
Variable overhead efficiency variance

Added by Vicenta B.

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