Bronfenbrenner Co

question 217

Essay

Bronfenbrenner Co.uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours.The following information is given:
Standard costs per unit: Actual experience for current year: Required:
Compute the following variances for raw materials,direct labor,and variable overhead,assuming that the price variance for materials is recognized at point of purchase:
a.Direct materials price variance.
b.Direct materials quantity variance.
c.Labor rate variance.
d.Labor efficiency variance.
e.Variable overhead rate variance.
f.Variable overhead efficiency variance.

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Definitions:

State Lines

Geographic boundaries that define the jurisdictional limits of a state within a country, affecting laws and regulations.

Warehousing Activities

Operations involved in storing goods in a warehouse, including inventory management, picking, packing, and shipping.

Re-stocking

The process of replenishing inventory or goods in a store or warehouse.

Inventory Carrying Costs

The costs required to make or buy a product, including risk of obsolescence, taxes, insurance, and warehousing space used to store the goods.