Silmon Corporation Makes a Product with the Following Standard Costs

question 163

Essay

Silmon Corporation makes a product with the following standard costs:
In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor-hours.During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram.The actual direct labor rate was $14.60 per hour and the actual variable overhead rate was $3.90 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 direct labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

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Definitions:

Intellectual Equality

The notion that individuals should be recognized as having equal intellectual potential irrespective of their background.

Direct Regulation

Direct Regulation refers to government rules or laws that directly dictate the conduct of individuals, businesses, and other organizations within a society.

Licensing

the process by which an individual or business is granted permission to perform certain activities or use certain properties under agreed terms.

NFPA

An abbreviation for the National Fire Protection Association, an organization that creates codes and standards for fire safety and prevention.