#14
Handerson Corporation makes a product with the followingstandard costs:
Standard Quantity orHours Standard Price orRate Direct materials 8.5 kilos $ 6.00 per kilo Direct labor 0.4 hours $ 20.00 per hour Variable overhead 0.4 hours $ 6.00 per hour
The company reported the following results concerning thisproduct in August.
Actual output 3,200 units Raw materials used inproduction 29,030 kilos Purchases of raw materials 31,600 kilos Actual direct labor-hours 1,160 hours Actual cost of raw materialspurchases $ 195,920 Actual direct labor cost $ 22,736 Actual variable overheadcost $ 7,540
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The labor rate variance for August is:
Multiple Choice
$512 U
$512 F
$464 U
$464 F
#15
Kartman Corporation makes a product with the following standardcosts:
Standard Quantity orHours Standard Price orRate Standard Cost PerUnit Direct materials 6.5 pounds $ 7.00 per pound $ 45.50 Direct labor 0.6 hours $ 24.00 per hour $ 14.40 Variable overhead 0.6 hours $ 4.00 per hour $ 2.40
In June the company's budgeted production was 3,400 units butthe actual production was 3,500 units. The company used 22,150pounds of the direct material and 2,290 direct labor-hours toproduce this output. During the month, the company purchased 25,400pounds of the direct material at a cost of $170,180. The actualdirect labor cost was $57,021 and the actual variable overhead costwas $8,931.
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The variable overhead rate variance for June is:
Multiple Choice
$210 U
$210 F
$229 F
$229 U
#14
Handerson Corporation makes a product with the followingstandard costs:
| Standard Quantity orHours | Standard Price orRate | ||||||||||
| Direct materials | 8.5 | kilos | $ | 6.00 | per kilo | ||||||
| Direct labor | 0.4 | hours | $ | 20.00 | per hour | ||||||
| Variable overhead | 0.4 | hours | $ | 6.00 | per hour | ||||||
The company reported the following results concerning thisproduct in August.
| Actual output | 3,200 | units | |
| Raw materials used inproduction | 29,030 | kilos | |
| Purchases of raw materials | 31,600 | kilos | |
| Actual direct labor-hours | 1,160 | hours | |
| Actual cost of raw materialspurchases | $ | 195,920 | |
| Actual direct labor cost | $ | 22,736 | |
| Actual variable overheadcost | $ | 7,540 | |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The labor rate variance for August is:
Multiple Choice
$512 U
$512 F
$464 U
$464 F
#15
Kartman Corporation makes a product with the following standardcosts:
| Standard Quantity orHours | Standard Price orRate | Standard Cost PerUnit | |||||||
| Direct materials | 6.5 | pounds | $ | 7.00 | per pound | $ | 45.50 | ||
| Direct labor | 0.6 | hours | $ | 24.00 | per hour | $ | 14.40 | ||
| Variable overhead | 0.6 | hours | $ | 4.00 | per hour | $ | 2.40 | ||
In June the company's budgeted production was 3,400 units butthe actual production was 3,500 units. The company used 22,150pounds of the direct material and 2,290 direct labor-hours toproduce this output. During the month, the company purchased 25,400pounds of the direct material at a cost of $170,180. The actualdirect labor cost was $57,021 and the actual variable overhead costwas $8,931.
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The variable overhead rate variance for June is:
Multiple Choice
$210 U
$210 F
$229 F
$229 U
Related questions
15)
Kartman Corporation makes a product with the following standardcosts:
| Standard Quantity orHours | Standard Price orRate | Standard Cost PerUnit | |||||||
| Direct materials | 6.5 | pounds | $ | 7.00 | per pound | $ | 45.50 | ||
| Direct labor | 0.6 | hours | $ | 24.00 | per hour | $ | 14.40 | ||
| Variable overhead | 0.6 | hours | $ | 4.00 | per hour | $ | 2.40 | ||
In June the company's budgeted production was 3,400 units butthe actual production was 3,500 units. The company used 22,150pounds of the direct material and 2,290 direct labor-hours toproduce this output. During the month, the company purchased 25,400pounds of the direct material at a cost of $170,180. The actualdirect labor cost was $57,021 and the actual variable overhead costwas $8,931.
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The variable overhead rate variance for June is:
Multiple Choice
$210 U
$210 F
$229 F
$229 U
33.
Gilder Corporation makes a product with the following standardcosts:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | ||||||
| Direct materials | 7.90 | grams | $ | 10.00 | per gram | $ | 79.00 | |
| Direct labor | 0.15 | hours | $ | 28.00 | per hour | $ | 4.20 | |
| Variable overhead | 0.15 | hours | $ | 8.00 | per hour | $ | 1.20 | |
The company reported the following results concerning this productin June:
| Originally budgeted output | 4,800 | units |
| Actual output | 5,040 | units |
| Raw materials used inproduction | 37,492 | grams |
| Purchases of raw materials | 41,792 | grams |
| Actual direct labor-hours | 670 | hours |
| Actual cost of raw materialspurchases | $392,840 | |
| Actual direct labor cost | $18,164 | |
| Actual variable overheadcost | $3,028 | |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The materials quantity variance for June is:
rev: 11_26_2016_QC_CS-71059
$240 U
$22,980 F
$23,240 U
$23,240 F
Tharaldson Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 7.3 | ounces | $ | 3.00 | per ounce | $ | 21.90 | ||
| Direct labor | 0.7 | hours | $ | 17.00 | per hour | $ | 11.90 | ||
| Variable overhead | 0.7 | hours | $ | 6.00 | per hour | $ | 4.20 | ||
The company reported the following results concerning this product in June.
| Originally budgeted output | 2,700 | units | |
| Actual output | 2,300 | units | |
| Raw materials used in production | 18,500 | ounces | |
| Purchases of raw materials | 21,600 | ounces | |
| Actual direct labor-hours | 3,800 | hours | |
| Actual cost of raw materials purchases | $ | 42,100 | |
| Actual direct labor cost | $ | 12,700 | |
| Actual variable overhead cost | $ | 3,350 | |
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 materials price variance for June is:
Multiple Choice
$22,700 U
$22,700 F
$1,944 F
$1,944 U
