Better Than That Corporation makes a product with the following standard costs: Standard Quantity or Hours...

Better Than That Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		3.5	grams	$	1.00	per gram
Direct labor		0.7	hours	$	11.00	per hour
Variable overhead		0.7	hours	$	2.00	per hour

The company planned to produce 3,200 units of output during July and reported the following actual results concerning this product in July.


Actual output		3,000	units
Actual direct labor-hours		1,910	hours
Purchases of raw materials		12,100	grams
Actual price of raw materials purchased	$	1.20	per gram
Actual direct labor rate	$	11.40	per hour
Actual variable overhead rate	$	2.10	per hour

The company applies variable overhead on the basis of direct labor-hours. Assume all of the materials purchased were used during the month to produce the 3,000 units.

Calculate the direct materials price variance.
Calculate the direct materials quantity variance.
Calculate the direct labor rate variance.
Calculate the direct labor efficiency variance.
Calculate the variable overhead rate variance.
Calculate the variable overhead efficiency variance.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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