Kowaleski Corporation Makes a Product with the Following Standard Costs

question 384

Essay

Kowaleski Corporation makes a product with the following standard costs: In June the company produced 9,100 units using 27,010 kilos of the direct material and 930 direct labor-hours. During the month the company purchased 30,600 kilos of the direct material at a price of $3.70 per kilo. The actual direct labor rate was $19.90 per hour and the actual variable overhead rate was $4.20 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:

Intentionally Retrieved

The process of consciously recalling specific information from one's memory.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including contextual details like time and place.

Personal Experience

An individual's accumulated knowledge or involvement in specific events or activities over time.

Retrieval Cues

Stimuli or prompts that aid the recall of information stored in memory.