Galeazzi Corporation Makes a Product with the Following Standard Costs

question 342

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:

Selective Perception

The method through which people filter media messages to align with their preferences, while disregarding any contradictory perspectives.

Systematic Attempt

A planned or organized effort to achieve a specific goal, often involving a methodical process.

Attribute

A quality or characteristic inherent to or ascribed to someone or something.

Selective Perception

The process by which individuals selectively interpret what they see based on their interests, background, experience, and attitudes.