Question

kropf inc. has provided the following data concerning one of the products in its standard cost system. variable manufacturing overhead is applied to products on the basis of direct labor-hours. inputs standard quantity or hours per unit of output standard price or rate direct materials 7.90 liters $ 7.50 per liter direct labor 0.50 hours $ 26.70 per hour variable manufacturing overhead 0.50 hours $ 6.40 per hour the company has reported the following actual results for the product for september: actual output 10,100 units raw materials purchased 80,500 liters actual cost of raw materials purchased $ 615,500 raw materials used in production 79,800 liters actual direct labor-hours 4,770 hours actual direct labor cost $ 130,302 actual variable overhead cost $ 23,814 required: a. compute the materials price variance for september. b. compute the materials quantity variance for september. c. compute the labor rate variance for september. d. compute the labor efficiency variance for september. e. compute the variable overhead spending variance for september. f. compute the variable overhead efficiency variance for september.

Answer 1

The question involves calculating materials, labor, and variable overhead variances in a standard cost system for Kropf Inc., which requires the application of managerial accounting formulas to the company's actual and standard cost data.

Step-by-step explanation:

The student is asking for help in calculating various variances relating to materials, labor, and variable overhead costs for a company called Kropf Inc. This is a task typically found in managerial accounting, which falls under the subject of Business at the college level. Based on the data provided, we will calculate six variances using formulas that compare the company's standard costs to their actual costs for a particular month.

Materials Price Variance

Materials Price Variance = (Actual Price per Unit - Standard Price per Unit) × Actual Quantity Purchased

Materials Quantity Variance

Materials Quantity Variance = (Actual Quantity Used - Standard Quantity Allowed for Actual Output) × Standard Price per Unit

Labor Rate Variance

Labor Rate Variance = (Actual Hourly Labor Rate - Standard Hourly Labor Rate) × Actual Labor Hours Worked

Labor Efficiency Variance

Labor Efficiency Variance = (Actual Labor Hours - Standard Labor Hours Allowed for Actual Output) × Standard Hourly Labor Rate

Variable Overhead Spending Variance

Variable Overhead Spending Variance = (Actual Variable Overhead Rate - Standard Variable Overhead Rate) × Actual Labor Hours

Variable Overhead Efficiency Variance

Variable Overhead Efficiency Variance = (Actual Labor Hours - Standard Labor Hours Allowed for Actual Output) × Standard Variable Overhead Rate