Heye Incorporated 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 August:
Required:
a. Compute the materials price variance for August.
b. Compute the materials quantity variance for August.
c. Compute the labor rate variance for August.
d. Compute the labor efficiency variance for August.
e. Compute the variable overhead rate variance for August.
f. Compute the variable overhead efficiency variance for August.

Question

Heye Incorporated 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 August:
  Required:
a. Compute the materials price variance for August.
b. Compute the materials quantity variance for August.
c. Compute the labor rate variance for August.
d. Compute the labor efficiency variance for August.
e. Compute the variable overhead rate variance for August.
f. Compute the variable overhead efficiency variance for August.

Quizplus · Accepted Answer

The Answer of Heye Incorporated 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 August:
  Required:
a. Compute the materials price variance for August.
b. Compute the materials quantity variance for August.
c. Compute the labor rate variance for August.
d. Compute the labor efficiency variance for August.
e. Compute the variable overhead rate variance for August.
f. Compute the variable overhead efficiency variance for August.

Heye Incorporated Has Provided the Following Data Concerning One of the Products