Computation of Variances and Other MissingData
The following data for O'Keefe Company pertain to the production of500 units of Product X during December. Selected data items areomitted. Fill in the missing amounts.
Direct materials (all materials purchased were used duringperiod) Standard cost per unit: Answer pounds at 2.88 per pound Total actual cost: Answer pounds costing $5,673 Standard cost allowed for units produced: $5,760 Materials price variance: $Answer AnswerFU Materials quantity variance: $144 U Direct labor Standard cost: 2 hours at $7.00 Actual cost per hour: $7.25 Total actual cost: $Answer Labor rate variance: $Answer AnswerFU Labor efficiency variance: $140 U Variable overhead Standard costs: Answer hours at $4.00 per direct laborhour Actual cost: $3,700 Variable overhead spending variance: $Answer AnswerFU Variable overhead efficiency variance: $Answer AnswerFU
Please answer all parts of the question.
Computation of Variances and Other MissingData
The following data for O'Keefe Company pertain to the production of500 units of Product X during December. Selected data items areomitted. Fill in the missing amounts.
| Direct materials (all materials purchased were used duringperiod) |
| Standard cost per unit: Answer pounds at 2.88 per pound |
| Total actual cost: Answer pounds costing $5,673 |
| Standard cost allowed for units produced: $5,760 |
| Materials price variance: $Answer AnswerFU |
| Materials quantity variance: $144 U |
| Direct labor |
| Standard cost: 2 hours at $7.00 |
| Actual cost per hour: $7.25 |
| Total actual cost: $Answer |
| Labor rate variance: $Answer AnswerFU |
| Labor efficiency variance: $140 U |
| Variable overhead |
| Standard costs: Answer hours at $4.00 per direct laborhour |
| Actual cost: $3,700 |
| Variable overhead spending variance: $Answer AnswerFU |
| Variable overhead efficiency variance: $Answer AnswerFU |
Please answer all parts of the question.
Related questions
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 | Standard Quantity or Hours per Unit of Output | Standard Price or Rate | |||||||||
| Direct materials | 7.4 | liters | $ | 7.00 | per liter | ||||||
| Direct labor | 0.70 | hours | $ | 21.70 | per hour | ||||||
| Variable manufacturing overhead | 0.70 | hours | $ | 5.90 | per hour | ||||||
The company has reported the following actual results for the product for September:
| Actual output | 9,600 | units | |
| Raw materials purchased | 75,000 | liters | |
| Actual cost of raw materials purchased | $ | 562,500 | |
| Raw materials used in production | 71,050 | liters | |
| Actual direct labor-hours | 6,410 | hours | |
| Actual direct labor cost | $ | 142,302 | |
| Actual variable overhead cost | $ | 34,614 | |
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.
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 | Standard Quantity or Hours per Unit of Output | Standard Price or Rate | |||||||||
| Direct materials | 7.4 | liters | $ | 7.00 | per liter | ||||||
| Direct labor | 0.70 | hours | $21.70 | per hour | |||||||
| Variable manufacturing overhead | 0.70 | hours | $ | 5.90 | per hour | ||||||
The company has reported the following actual results for the product for September:
| Actual output | 9,600 | units | |
| Raw materials purchased | 75,000 | liters | |
| Actual cost of raw materials purchased | $ | 562,500 | |
| Raw materials used in production | 71,050 | liters | |
| Actual direct labor-hours | 6,410 | hours | |
| Actual direct labor cost | $ | 142,302 | |
| Actual variable overhead cost | $ | 34,614 | |
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.
Fortes 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 | Standard Quantity or Hours per Unit of Output | Standard Price or Rate | |||||||||
| Direct materials | 8.6 | ounces | $ | 6.70 | per ounce | ||||||
| Direct labor | 0.5 | hours | $ | 19.70 | per hour | ||||||
| Variable manufacturing overhead | 0.5 | hours | $ | 5.00 | per hour | ||||||
The company has reported the following actual results for the product for April:
| Actual output | 6,200 | units | |
| Raw materials purchased | 55,050 | ounces | |
| Actual cost of raw materials purchased | $ | 309,640 | |
| Raw materials used in production | 53,350 | ounces | |
| Actual direct labor-hours | 2,910 | hours | |
| Actual direct labor cost | $ | 60,700 | |
| Actual variable overhead cost | $ | 13,681 | |
Required:
a. Compute the materials price variance for April.
b. Compute the materials quantity variance for April.
c. Compute the labor rate variance for April.
d. Compute the labor efficiency variance for April.
e. Compute the variable overhead rate variance for April.
f. Compute the variable overhead efficiency variance for April.
(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.)
