In: Accounting
Thompson Company uses a standard cost system for its single
product. The following data are available:
Actual experience for the current year:
Standards per unit of product:
Required: Show Your Work
Compute the following variances for raw materials, direct labor,
and variable overhead, assuming that the price variance for
materials is recognized at point of usage:
a. Direct materials price variance and Direct materials quantity
variance.
b. Direct labor rate variance and Direct labor efficiency
variance.
c. Variable overhead rate variance and Variable overhead efficiency
variance.