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Fortes Incorporated 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 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 Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance $ 386,210 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 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 Incorporated 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 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 Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance $ 386,210 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 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
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 3E: The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the...
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Fortes Incorporated 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 Actual put 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 Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance f. Variable overhead efficiency variance $ 386,210 52,020 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 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.)
Transcribed Image Text:Fortes Incorporated 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 Actual put 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 Standard Quantity or Hours per Unit of Output 8.0 ounces 0.5 hours 0.5 hours The company has reported the following actual results for the product for April: 6,500 units 62,350 ounces a. Materials price variance b. Materials quantity variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance f. Variable overhead efficiency variance $ 386,210 52,020 ounces 3,200 hours Standard Price or Rat $ 8.10 per ounce $24.70 per hour $ 6.40 per hour $ 88,880 $ 20,395 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.)
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