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Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 3.70 liters e.se hours e.se hours The company has reported the following actual results for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,900 units 96, 300 liters $823, se0 54, 850 liters 5,0ee hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity veriance for September. c Compute the labor rete veriance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhesd rate variance for September. f. Compute the variable overhesd efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). Input all amounts as positive values.)

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhesd is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 3.70 liters e.se hours e.se hours The company has reported the following actual results for the product for September. Actual output Raw naterials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,900 units 96, 300 liters $823, se0 54, 850 liters 5,0ee hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity veriance for September. c Compute the labor rete veriance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhesd rate variance for September. f. Compute the variable overhesd efficiency variance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). Input all amounts as positive values.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...
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Kropf Inc. has provided the following data concerning one of the products in its standord cost system. Variable manufacturing overhead is spplied to products on the basis of direct lebor-hours. Standard Quantity or Hours per Unit of Output 8.70 liters e.se hours Standard Price ar Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour Inputs Direct materials Direct labor Variable manufacturing overhead e.se hours The company hos reported the following actual results for the product for September. Actual autput Raw materials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,9ee units 96, 300 liters $823, See 94,850 liters 5,0e0 hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the lebor efficiency variance for September. e. Compute the variable overhead rste vorionce for September. f. Compute the verieble overhesd efficiency veriance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Answer is complete but not entirely correct. s 2,725 OU Materials price variance Materials quantity variance a. b. Is 166 U C. Labar rate variance IS 3,800 u IS 128.087 IS 3,600 F d. Labor efficiency variance e. Variable averhead rate variance Variable averhead efficiency Is 3.240 OF f. variance
Transcribed Image Text:Kropf Inc. has provided the following data concerning one of the products in its standord cost system. Variable manufacturing overhead is spplied to products on the basis of direct lebor-hours. Standard Quantity or Hours per Unit of Output 8.70 liters e.se hours Standard Price ar Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour Inputs Direct materials Direct labor Variable manufacturing overhead e.se hours The company hos reported the following actual results for the product for September. Actual autput Raw materials purchased Actual cost of raw naterials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 10,9ee units 96, 300 liters $823, See 94,850 liters 5,0e0 hours $142, 302 $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the lebor efficiency variance for September. e. Compute the variable overhead rste vorionce for September. f. Compute the verieble overhesd efficiency veriance for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Answer is complete but not entirely correct. s 2,725 OU Materials price variance Materials quantity variance a. b. Is 166 U C. Labar rate variance IS 3,800 u IS 128.087 IS 3,600 F d. Labor efficiency variance e. Variable averhead rate variance Variable averhead efficiency Is 3.240 OF f. variance
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