Question

1.

Majer Corporation makes a product with the following standard costs: 

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	6.7 ounces	$3.00 per ounce	$20.10
Direct labor	0.7 hours	$18.00 per hour	$12.60
Variable overhead	0.7 hours	$3.00 per hour	$2.10

The company reported the following results concerning this product in February

Originally budgeted output	5,700 units
Actual output	5,300 units
Raw materials used in production	30,800 ounces
Actual direct labor-hours	7,960 hours
Purchases of raw materials	33,200 ounces
Actual price of raw materials	$92.90 per ounce
Actual direct labor rate	$102.40 per hour
Actual variable overhead rate	$4.80 per hour

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 quantity variance for February is:

2.

Doogan Corporation makes a product with the following standard costs: 

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	9.2 grams	$3.80 per gram
Direct labor	0.3 hours	$38.00 per hour
Variable overhead	0.3 hours	$8.80 per hour

The company produced 7,000 units in January using 41,110 grams of direct material and 2,560 direct labor-hours. During the month, the company purchased 46,200 grams of the direct material at $3.50 per gram. The actual direct labor rate was $37.30 per hour and the actual variable overhead rate was $8.60 per hour. 

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 variable overhead rate variance for January is:

3.

Doogan Corporation makes a product with the following standard costs: 

	Standard Quantity or  Hours	Standard Price or Rate
Direct materials	2.0 grams	$7.00 per gram
Direct labor	0.9 hours	$17.00 per hour
Variable overhead	0.9 hours	$3.00 per hour

The company produced 4,500 units in January using 10,150 grams of direct material and 2,130 direct labor-hours. During the month, the company purchased 10,720 grams of the direct material at $ 7.35 per gram. The actual direct labor rate was $ 17.90 per hour and the actual variable overhead rate was $ 2.80 per hour.

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 quantity variance for January is:

Answer 1

Post only one question. Post remaining seperately

1. Materials Quantity Variance = (SQ-AQ) *SP = (5300*6.7 - 30,800)*3 = (35,510 - 30,800)*3 = 14,130 F