Thompson Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year: Standards per unit of product: 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.

Question

Thompson Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year:  Standards per unit of product:  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.

Quizplus · Accepted Answer

The Answer of Thompson Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year:  Standards per unit of product:  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.

Thompson Company Uses a Standard Cost System for Its Single