Galeazzi Corporation Makes a Product with the Following Standard Costs

question 58

Essay

Galeazzi Corporation makes a product with the following standard costs:
In October the company produced 3,000 units using
8,380 pounds of the direct material and 2,610 direct labor-hours. During the month, the company purchased 9,500 pounds of the direct material at a total cost of $55,100. The actual direct labor cost for the month was $48,546 and the actual variable overhead cost was $16,965. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.

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Definitions:

Emotional Preparation

The process of readying one's emotional state or mindset to face a particular situation or task.

Physical Examination

A thorough assessment of a patient's body by a healthcare professional to detect any signs of disease or abnormalities.

Prognosis

A prediction of the probable course of a disease in an individual and the chances of recovery.

Dorsal Recumbent

A position where an individual lies on their back, with legs bent and knees apart, often used in medical examinations.