Fortes 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 laborhours.
tableInputsStandard Quantity orDirect materials,Hours per Unit of Output,Standard Price or RateDirect labor, ounces,$ per ounceVariable manufacturing overhead, hours,$ per hour hours,$ per hour
The company has reported the following actual results for the product for April:
Actual output
Raw materials purchased
Actual cost of raw materials purchased
Raw materials used in production
Actual direct laborhours
Actual direct labor cost
Actual variable overhead cost
Required:
a Compute the materials price variance for April.
b Compute the materials quantity variance for April.
c Compute the labor rate variance for April.
d Compute the labor efficiency variance for April.
e Compute the variable overhead rate variance for April.
f Compute the variable overhead efficiency variance for April.
Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
