Kowaleski Corporation Makes a Product with the Following Standard Costs

question 89

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.

---

Definitions:

Bipolar Constructs

Cognitive structures used in personal construct psychology, consisting of a pair of opposites used to evaluate and understand the world.

Self-Actualization

is the realization or fulfilment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Dichotomized Construct

A concept that is divided into two mutually exclusive categories or variables, simplifying complex traits or behaviors into a binary format.

Sociality Corollary

Suggests individuals' identities and perceptions are shaped through social interactions and relationships.