Moates Corporation Makes a Product with the Following Standard Costs

question 289

Essay

Moates Corporation makes a product with the following standard costs: In January the company produced 5,800 units using 38,740 kilos of the direct material and 1,110 direct labor-hours. During the month, the company purchased 41,000 kilos of the direct material at a total cost of $49,200. The actual direct labor cost for the month was $20,979 and the actual variable overhead cost was $6,993. 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:

Achievement Motivation

The inner drive or desire to attain a goal or reach a certain level of performance, often linked to success in various endeavors.

Competitive Play

Activities or games where individuals or teams compete against each other with the objective of winning or achieving a specific goal.

Narcissism

A personality trait or disorder characterized by self-centeredness, a lack of empathy for others, and an excessive need for admiration.

Narcissism

A personality trait characterized by a grandiose sense of self-importance, a need for admiration, and a lack of empathy for others.