Silmon Corporation makes a product with the following standardcosts:
Inputs Standard Quantity or Hours Standard Price or Rate
Direct Materials 6.1 grams $7.00 per gram
Direct Labor 0.4 hours $14.00 per hour
Variable Overhead 0.4 hours $2.00 per hour
In June the company produced 5,400 units using 34,190 grams of thedirect material and 2,700 direct labor-hours. During the month thecompany purchased 25,300 grams of the direct material at a price of$6.80 per gram. The actual direct labor rate was $14.60 per hourand the actual variable overhead rate was $1.90 per hour. Thematerials price variance is computed when materials are purchased.Variable overhead is applied on the basis of directlabor-hours.
Required:
Compute the following variances for raw materials, direct labor,and variable overhead, assuming that the price variance formaterials is recognized at point of purchase:
A. direct materials quantity variance (F or U)
B. direct materials price variance (F or U)
C. direct labor efficiency variance (F or U)
D. direct labor rate variance (F or U)
E. variable overhead efficiency variance (F or U)
F. variable overhead rate variance (F or U)
Inputs Standard Quantity or Hours Standard Price or Rate
Direct Materials 6.1 grams $7.00 per gram
Direct Labor 0.4 hours $14.00 per hour
Variable Overhead 0.4 hours $2.00 per hour
In June the company produced 5,400 units using 34,190 grams of thedirect material and 2,700 direct labor-hours. During the month thecompany purchased 25,300 grams of the direct material at a price of$6.80 per gram. The actual direct labor rate was $14.60 per hourand the actual variable overhead rate was $1.90 per hour. Thematerials price variance is computed when materials are purchased.Variable overhead is applied on the basis of directlabor-hours.
Required:
Compute the following variances for raw materials, direct labor,and variable overhead, assuming that the price variance formaterials is recognized at point of purchase:
A. direct materials quantity variance (F or U)
B. direct materials price variance (F or U)
C. direct labor efficiency variance (F or U)
D. direct labor rate variance (F or U)
E. variable overhead efficiency variance (F or U)
F. variable overhead rate variance (F or U)
Related questions
Silmon Corporation makes a product with the following standardcosts:
| Standard Quantity or Hours | Standard Price or Rate | ||||
| Direct materials | 4.7 | grams | $ | 6.00 | per gram |
| Direct labor | 0.4 | hours | $ | 13.00 | per hour |
| Variable overhead | 0.4 | hours | $ | 3.00 | per hour |
In June the company produced 5,200 units using 25,690 grams ofthe direct material and 2,560 direct labor-hours. During the monththe company purchased 25,100 grams of the direct material at aprice of $5.80 per gram. The actual direct labor rate was $13.60per hour and the actual variable overhead rate was $2.90 per hour.The materials price variance is computed when materials arepurchased. Variable overhead is applied on the basis of directlabor-hours. |
| Required: |
Compute the following variances for raw materials, direct labor,and variable overhead, assuming that the price variance formaterials is recognized at point of purchase: (Input allamounts as positive values. Do not round intermediate calculations.Leave no cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Omit the "$" sign in your response.) |
| a. | Direct materialsquantity variance | $ | (_____)F/U/None |
| b. | Direct materialsprice variance | $ | (_____)F/U/None |
| c. | Direct laborefficiency variance | $ | (_____)F/U/None |
| d. | Direct laborrate variance | $ | (_____)F/U/None |
| e. | Variableoverhead efficiency variance | $ | (_____)F/U/None |
| f. | Variableoverhead rate variance | $ | (_____)F/U/None |
Silmon Corporation makes a product with the following standardcosts: |
| Standard Quantity or Hours | Standard Price or Rate | ||||
| Directmaterials | 3.6 | grams | $ | 7.00 | per gram |
| Direct labor | 0.5 | hours | $ | 14.00 | per hour |
| Variableoverhead | 0.5 | hours | $ | 4.00 | per hour |
In June the company produced 4,100 units using 15,780 grams ofthe direct material and 2,450 direct labor-hours. During the monththe company purchased 24,000 grams of the direct material at aprice of $6.80 per gram. The actual direct labor rate was $14.60per hour and the actual variable overhead rate was $3.90 per hour.The materials price variance is computed when materials arepurchased. Variable overhead is applied on the basis of directlabor-hours. |
| Required: |
Compute the following variances for raw materials, direct labor,and variable overhead, assuming that the price variance formaterials is recognized at point of purchase: (Input allamounts as positive values. Do not round intermediate calculations.Leave no cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Omit the "$" sign in your response.) |
| a. | Direct materials quantityvariance | $ | (Click to select)FUNone |
| b. | Direct materials pricevariance | $ | (Click to select)FUNone |
| c. | Direct labor efficiencyvariance | $ | (Click to select)FUNone |
| d. | Direct labor rate variance | $ | (Click to select)FUNone |
| e. | Variable overhead efficiencyvariance | $ | (Click to select)FUNone |
| f. | Variable overhead ratevariance | $ | (Click to select)FUNone |
