Moates Corporation Makes a Product with the Following Standard Costs

question 369

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:

T-statistic

A type of statistic used in hypothesis testing, calculated by dividing the difference between the sample mean and the hypothesized population mean by the standard error of the mean.

Alpha

A statistical significance level often set at 0.05 or 5%, indicating the probability threshold below which the observed data are considered statistically significant.

Null Hypotheses

The null hypothesis is a statement in statistical hypothesis testing that assumes no effect or no difference in the case of the study, serving as the default or initial assumption.

T-test

A statistical method employed to assess if there's a notable difference in the averages of two distinct groups.