Question
In: Accounting
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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 | 7.0 | ounces | $ | 7.10 | per ounce | ||||||
| Direct labor | 0.5 | hours | $ | 31.70 | per hour | ||||||
| Variable manufacturing overhead | 0.5 | hours | $ | 5.40 | per hour | ||||||
The company has reported the following actual results for the product for April:
| Actual output | 8,500 | units | |
| Raw materials purchased | 61,970 | ounces | |
| Actual cost of raw materials purchased | $ | 331,880 | |
| Raw materials used in production | 59,510 | ounces | |
| Actual direct labor-hours | 3,050 | hours | |
| Actual direct labor cost | $ | 99,480 | |
| Actual variable overhead cost | $ | 15,483 | |
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.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
8.5
ounces
$
6.60
per ounce
Direct labor
0.6
hours
$
24.80
per hour
Variable manufacturing overhead
0.60
hours
$
4.90
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
9.7
ounces
$
7.80
per ounce
Direct labor
0.4
hours
$
38.70
per hour
Variable manufacturing overhead
0.40
hours
$
6.10
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
7.9
ounces
$
8.00
per ounce
Direct labor
0.5
hours
$
25.70
per hour
Variable manufacturing overhead
0.5
hours
$
6.30
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
7.0
ounces
$
7.10
per ounce
Direct labor
0.5
hours
$
31.70
per hour
Variable manufacturing overhead
0.5
hours
$
5.40
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
7.9
ounces
$
8.00
per ounce
Direct labor
0.5
hours
$
25.70
per hour
Variable manufacturing overhead
0.5
hours
$
6.30
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
7.8
ounces
$
7.90
per ounce
Direct labor
0.5
hours
$
30.70
per hour
Variable manufacturing overhead
0.5
hours
$
6.20
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
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
8.8
ounces
$
6.90
per ounce
Direct labor
0.5
hours
$
29.70
per hour
Variable manufacturing overhead
0.5
hours
$
5.20
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Materials price variances
is calculated on material purchased and materials quantity is based
on Material used in production. 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
8.7
ounces
$
6.80
per ounce
Direct labor
0.6
hours
$
28.70
per hour
Variable manufacturing overhead...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Materials price variances
is calculated on material purchased and materials quantity is based
on Material used in production. 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
8.7
ounces
$
6.80
per ounce
Direct labor
0.6
hours
$
28.70
per hour
Variable manufacturing overhead...
Question 5 Fortes Inc. has provided the following data concerning one of the products in its...
Question 5
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Materials price variances
is calculated on material purchased and materials quantity is based
on Material used in production. 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
10.0
ounces
$
8.10
per ounce
Direct labor
0.5
hours
$
24.70
per hour
Variable...
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