The standards for one case of liquid weed killer are asfollows:Direct materials7lb...The standards for...

70.2K

Verified Solution

Question

Accounting

The standards for one case of liquid weed killer are asfollows:
Direct materials 7 lb @ $ 8.25 /lb
Direct labor 4 hr @ $ 17.6 /hr
Variable overhead (based onmachine hours) 1.3 hr @ $ 6.05 /hr

During the week ended May 6, the following activity took place:
5,162 machine hours were worked.
29,553 lb of raw material were purchased for inventory at atotal cost of $248,836.
4,180 cases of finished product were produced.
29,110 lb of raw material were used.
16,352 labor hours were worked at an average rate of $17.88 perhour.
$30,146 actual variable overhead costs were incurred.
Required:
Calculate each of the following variances. (Do not roundintermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zerovariance).)
a. price variance for raw material purchased
b. Raw material usage variance
c. Direct labor rate variance
d. Direct labor efficiency variance
e Variable overhead efficiency variance
(two solutions are required here)

Answer & Explanation Solved by verified expert

4.0 Ratings (718 Votes)

HiLet See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingThe standards for one case of liquid weed killer are asfollows:Direct materials7lb...The standards for one case of liquid weed killer are asfollows:Direct materials7lb@$8.25/lbDirect labor4hr@$17.6/hrVariable overhead (based onmachine hours)1.3hr@$6.05/hrDuring the week ended May 6, the following activity took place:5,162 machine hours were worked.29,553 lb of raw material were purchased for inventory at atotal cost of $248,836.4,180 cases of finished product were produced.29,110 lb of raw material were used.16,352 labor hours were worked at an average rate of $17.88 perhour.$30,146 actual variable overhead costs were incurred.Required:Calculate each of the following variances. (Do not roundintermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zerovariance).)a. price variance for raw material purchasedb. Raw material usage variancec. Direct labor rate varianced. Direct labor efficiency variancee Variable overhead efficiency variance(two solutions are required here)


Direct materials	7	lb	@	$	8.25	/lb
Direct labor	4	hr	@	$	17.6	/hr
Variable overhead (based onmachine hours)	1.3	hr	@	$	6.05	/hr