Duboise Corporation Makes a Product with the Following Standard Costs

question 143

Essay

Duboise Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in October.
The materials price variance is recognized 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:

Units-of-Production

A depreciation method that allocates the cost of an asset over its useful life based on the actual amount of production or use.

Double Declining-Balance

An accelerated method of depreciation which doubles the straight-line depreciation rate.

Trade-In Value

The amount credited to a buyer when they provide a used item as part of the payment for a new item, often used in automobile and appliance transactions.

Accumulated Depreciation

The cumulative depreciation expense charged for a fixed asset since its initial use.