Mirabito 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.
The company has reported the following actual results for the product for December:
Required:
a. Compute the materials price variance for December.
b. Compute the materials quantity variance for December.
c. Compute the labor rate variance for December.
d. Compute the labor efficiency variance for December.
e. Compute the variable overhead rate variance for December.
f. Compute the variable overhead efficiency variance for December.

Question

Mirabito 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.
  The company has reported the following actual results for the product for December:
  Required:
a. Compute the materials price variance for December.
b. Compute the materials quantity variance for December.
c. Compute the labor rate variance for December.
d. Compute the labor efficiency variance for December.
e. Compute the variable overhead rate variance for December.
f. Compute the variable overhead efficiency variance for December.

Quizplus · Accepted Answer

The Answer of Mirabito 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.
  The company has reported the following actual results for the product for December:
  Required:
a. Compute the materials price variance for December.
b. Compute the materials quantity variance for December.
c. Compute the labor rate variance for December.
d. Compute the labor efficiency variance for December.
e. Compute the variable overhead rate variance for December.
f. Compute the variable overhead efficiency variance for December.