Thompson Company uses a standard cost system for its single product. The following data are available:
|
Actual experience for the current year:
|
|
|
|
|
| Purchases of raw materials (20,000 yards at $20.00 per yard) |
$ |
400,000 |
|
| Raw materials used |
|
23,000 |
yards |
| Direct labor costs (11,300 hours at $17.00 per hour) |
$ |
192,100 |
|
| Actual variable overhead cost |
$ |
84,260 |
|
| Units produced |
|
13,700 |
units |
|
|
Standards per unit of product:
|
|
|
| Raw materials |
1.8 yards at $22.00 per yard |
| Direct labor |
.8 hours at $16.50 per hour |
| Variable overhead |
$7.00 per direct labor hour |
|
| Required: |
|
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
|
|
|
|
| a. |
Direct materials price variance |
$ |
FUNone |
| b. |
Direct materials quantity variance |
$ |
FUNone |
| c. |
Direct labor rate variance |
$ |
FUNone |
| d. |
Direct labor efficiency variance |
$ |
FUNone |
| e. |
Variable overhead rate variance |
$ |
FUNone |
| f. |
Variable overhead efficiency variance |
$ |
FUNone |