Question

Use the following information to answer the next six questions, Kartman Corporation makes a product with the following standard costs Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.5 pounds 0.6 hours 0.6 hours Standard Cost Standard Price or Rate Per Unit $ 7.00 per pound $ 45.50 $24.00 per hour $ 14.40 $ 4.00 per hour S 2.40 In June the company's budgeted production was 3.400 units but the actual production was 3,500 s of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170.180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. 12) The materials quantity variance for June is: A) $4,200 F B) $4,200 U C) $4,020 U D) $4,020 F 13) The materials price variance for June is: A) $7,620 U B) $6,825 U C) $6,825 F D) $7,620 F 14) The labor efficiency variance for June is: A) $4,560 F B) $4,560 U C) $4,731 U D) $4,731 F 15) The labor rate variance for June is: A) $1,890 F B) $2,061 U C) $2,061 F D) $1,890 U

Answer 1

7620 F 4200 F Mateial Price Variance (AQ*AP)-(AQ*SP) Matrial Quanity Varaince (AQ*SP)-(SQ*SP) Labor rate Variance (AH*AR-AH*SR) labor Efficiency Varaince (AH*SR)-(SH*SR) 2061 U 4560 12) 13) 14) 15) A D) B B) Answers $4200 F $7620 F $4560 U $2061 U Matrial Quanity Varaince Mateial Price Variance labor Efficiency Varaince Labor rate Variance

SP Data Direct Material Standard Price Standard quantity Per unit Standard Quantity for Actual Output SQ Actual Output Actual Quantity Purchased AQP Actual Quanity Used AQ Actual Price of Material AP Direct Labor Standard Rate SR Standard hours per unit Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual Rate 57021/2290 AR 7.00 Per Pound 6.5 Pounds 22750 Pounds 3500 Units 25400 Pounds 22150 Pounds 6.70 Per Pound 24 Per hour 0.6 hours 2100 Hours 3500 Units 2290 hours 24.90 Per hour