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Majer Corporation makes a product with the following standard costs

TB MC Qu. 10-150 Majer Corporation makes a product with.. 


Majer Corporation makes a product with the following standard costs: 






Standard Quantity or HoursStandard Price or  RateStandard Cost Per Unit
Direct materials6.7 ounces$2.00 per ounce$13.40
Direct labor0.5 hours$14.00 per hour$7.00
Variable overhead0.5 hours$2.00 per hour$1.00


The company reported the following results concerning this product in February 

Originally budgeted output5,300 units
Actual output4,900 units
Raw materials used in production30,400 ounces
Actual direct labor-hours7,920 hours
Purchases of raw materials32,800 ounces
Actual price of raw materials$52.90 per ounce
Actual direct labor rate$62.40 per hour
Actual variable overhead rate$4.40 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 efficiency variance for February is:


Solutions

Expert Solution

Answer:- The materials quantity variance for February is = $4860 F.

Explanation-

Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price

=(32830 ounces – 30400 ounces)*$2.00 per ounce

= $4860 Favorable

Where:-

Standard Quantity = No. of yards per unit*Actual output

= 6.7 ounces per unit *4900 units

= 32830 ounces

ekkarill92 answered 3 years ago
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