Blomdahl Corporation makes a product with the following standard costs: Inputs Standard Quantity/Hours Standard Price/Rate
Direct Materials 3.5 Kilos $6.50 per Kilo
Direct Labor 0.7 Hours $21.00 per hour
Variable Overhead 0.7 Hour $5.00 per hour
The company reported the following results concerning this product in October.
Actual Output 8,400 units
Purchase of raw materials 22,500 kilos
Actual direct labor-hours 5,500 hours
Raw materials used in production 29,000 kilos
Actual cost of raw materials $155,777
Actual cost of direct labor $132,000
Actual variable overhead rate $4.25 per hour
The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
A. Computer the materials quantity variance.
B. Compute the materials price variance.
C. Computer the labor efficiency variance.
D. Compute the labor rate variance.
E. Compute the variable overhead efficiency variance.
F. Compute the variable overhead rate variance.