Reference no: EM133116416
Question - Genus Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year:
Purchase of raw materials (15,000 yards @ $13 per yard) $195,000
Raw material used 12,000 yards
Direct labour costs (10,200 hours at $10 per hour) $102,000
Actual variable overhead cost $84,150
Units produced 12,600 units
Standard per unit of product:
Raw materials 1.1 yards at $15 per yard
Direct Labour 0.8 hour at $9.50 per hour
Variable overhead $8 per direct labour 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:
a. Direct materials price variance.
b. Direct materials quantity variance.
c. Direct labor rate variance.
d. Direct labor efficiency variance.
e. Variable overhead rate variance.
f. Variable overhead efficiency variance.
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