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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. Standard Quantity or Hours per Unit of Output Standard Price or Rate $ 6.40 per ounce $22.80 per hour $ 4.70 per hour Inputs Direct materials 8.3 ounces Direct labor 0.7 hours Variable manufacturing overhead 0.7 hours The company has reported the following actual results for the product for April: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours 5,900 units 54,560 ounces $298,530 48,980 ounces 3,890 hours $ 91,060 $ 17,630 Actual direct labor cost Actual variable overhead cost 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.)

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. Standard Quantity or Hours per Unit of Output Standard Price or Rate $ 6.40 per ounce $22.80 per hour $ 4.70 per hour Inputs Direct materials 8.3 ounces Direct labor 0.7 hours Variable manufacturing overhead 0.7 hours The company has reported the following actual results for the product for April: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours 5,900 units 54,560 ounces $298,530 48,980 ounces 3,890 hours $ 91,060 $ 17,630 Actual direct labor cost Actual variable overhead cost 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.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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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. Standard Quantity or Hours per Unit of Output 8.3 ounces 0.7 hours 0.7 hours Standard Price or Rate $ 6.40 per ounce $22.80 per hour $ 4.70 per hour Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for April: Actual output 5,900 units Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours 54,560 ounces $298,530 48,980 ounces 3,890 hours $ 91,060 $ 17,630 Actual direct labor cost Actual variable overhead cost 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.) a. Materials price variance b. Materials quantity variance C. Labor rate variance d. Labor efficiency variance Variable overhead rate variance e. f. Variable overhead efficiency variance
Transcribed Image Text: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. Standard Quantity or Hours per Unit of Output 8.3 ounces 0.7 hours 0.7 hours Standard Price or Rate $ 6.40 per ounce $22.80 per hour $ 4.70 per hour Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for April: Actual output 5,900 units Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours 54,560 ounces $298,530 48,980 ounces 3,890 hours $ 91,060 $ 17,630 Actual direct labor cost Actual variable overhead cost 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.) a. Materials price variance b. Materials quantity variance C. Labor rate variance d. Labor efficiency variance Variable overhead rate variance e. f. Variable overhead efficiency variance
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