Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thompson company uses a standard cost system for i

Thompson Company uses a standard cost system for its single product. The following data are...

90.2K

Verified Solution

Question

Accounting

Thompson Company uses a standard cost system for its single product. The following data are available:

Actual experience for the current year:

Purchases of raw materials (10,000 yards at $10.00 per yard) $ 100,000
Raw materials used 16,000 yards
Direct labor costs (10,300 hours at $7.00 per hour) $ 72,100
Actual variable overhead cost $ 84,040
Units produced 12,700 units

Standards per unit of product:

Raw materials 1.6 yards at $12.00 per yard
Direct labor .7 hours at $6.50 per hour
Variable overhead $7.00 per direct labor hour

Required:

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Answer & Explanation Solved by verified expert
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

Other questions asked by students