Compute the following variances for raw materials direct

Reference no: EM13582092

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

Reference no: EM13582092

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