Question

Student Login Trid... Employee Self-Servi... Login | Salesforce G Home CNSSS : Home > Trident Main Site - Calendar - Events - 6-10 0 Saved Help Save & Exit Submit Check my work 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. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 8.2 ounces 0.6 hours 0.6 hours Standard Price or Rate $ 6.30 per ounce $21.80 per hour $ 4.60 per hour 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 Actual direct labor cost Actual variable overhead cost 5,800 units 48,480 ounces $289,6ee 47,578 ounces 3,170 hours $ 73,240 $ 13,884 Required: < Prey 5 of 5 !! Next > 12:51 PM 2/17/2020 o search TC0342

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Answer 1

			Data for Resource Variance
			Budgeted	Standard	Actual
			Quantity/Hrs	Rate	Amount	Quantity/Hrs	Rate	Amount	Quantity/Hrs	Rate	Amount
		Material	8.2	6.3	51.66	47560	6.3	299628	47570	5.983471	284633.7
		Labour	0.6	21.8	13.08	3480	21.8	75864	3170	23.1041	73240
		V. Overhead	0.6	4.6	2.76	3480	4.6	16008	3170	4.379811	13884
			Total		67.5			391500			371757.7
1. Computation of Variances
a)		Material Price Variance = (Standard Price - Actual Price ) Actual Quantity Purchased
		= (6.3 - 5.98 ) 48400
		=15488/- Favourable
		Material Quantity Variance = (Standard quantity - Actual Quantity ) Standard Price
		= (47560 - 47570 )6.3
		= 63 UnFavorable
b)		Labour Rate Variance = (Standard Rate - Actual Rate) Actual Hrs Worked
		= (21.8 - 23.10)* 3170
		=4121 UnFaovourable
		Labour Efficiency Variance = (Standard Hrs. - Actual Hrs) Standard Rate
		= (3480 - 3170 ) 21.8
		=6758 Unfavorable
c)		Variable Overhead(OH) Rate Variance = (Standard Rate - Actual Rate ) Actual Machine Hrs Worked
		=(4.6 - 4.38) * 3170
		=697.4 Favorable
		Variable OH Efficiency Variance = (Standard hrs. - Actual Hrs) Standard Rate
		= (3480- 3170)*4.6
		=1426 Favourable
2. Summary
		Material Price Variance	15488 F
		Material Quantity Variance	63 U
		Labour Rate Variance	4121 U
		Labour Efficiency Variance	6758 U
		Variable Overhead(OH) Rate Variance	697.4 F
		Variable OH Efficiency Variance	1426 F