Doby Corporation Makes a Product with the Following Standard Costs

question 87

Essay

Doby Corporation makes a product with the following standard costs:
In July the company produced 4,800 units using 13,450 ounces of the direct material and 970 direct labor-hours.During the month the company purchased 14,600 ounces of the direct material at a price of $7.20 per ounce.The actual direct labor rate was $16.20 per hour and the actual variable overhead rate was $5.40 per hour.The materials price variance is computed when materials are purchased.Variable overhead is applied on the basis of direct labor-hours.
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:

Malpractice

Professional misconduct or failure to provide adequate services, leading to harm, loss, or damage, often seen in medical, legal, and other professional fields.

Professional Honesty

The ethical principle requiring individuals to be truthful and transparent in their professional dealings, ensuring fairness and integrity.

Informed Consent

The process by which an individual is fully informed about the procedures and risks involved in a particular action or decision, agreeing to it without any coercion.

Ethical Decisions

Choices made based on moral principles and values to determine the right course of action in a challenging situation.