Zee Corporation has developed the following cost standards for the production of its leather backpacks: Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows: The direct materials purchases variance is computed when the materials are purchased.
Required:
Compute the following variances for Zee.
a. Materials price variance.
b. Materials quantity variance.
c. Labor efficiency variance.
d. Variable overhead rate variance.

Question

Zee Corporation has developed the following cost standards for the production of its leather backpacks:  Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows:  The direct materials purchases variance is computed when the materials are purchased.
Required:
Compute the following variances for Zee.
a. Materials price variance.
b. Materials quantity variance.
c. Labor efficiency variance.
d. Variable overhead rate variance.

Quizplus · Accepted Answer

The Answer of Zee Corporation has developed the following cost standards for the production of its leather backpacks:  Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows:  The direct materials purchases variance is computed when the materials are purchased.
Required:
Compute the following variances for Zee.
a. Materials price variance.
b. Materials quantity variance.
c. Labor efficiency variance.
d. Variable overhead rate variance.

Zee Corporation Has Developed the Following Cost Standards for the Production