San Diego State University Operations And Supply Chain Management Assignment Help - Products

Question - 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 (12,000 yards at $12.00 per yard) $ 144,000
Raw materials used 19,000 yards
Direct labor costs (10,100 hours at $9.00 per hour) $ 90,900
Actual variable overhead cost $ 84,020
Units produced 12,500 units


Standards per unit of product:

Raw materials 1.8 yards at $14.00 per yard
Direct labor .8 hours at $8.50 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: (I ...Read More nput 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 $
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 $ ...Read Less

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