Bronfenbrenner Co.uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours.The following information is given:
Standard costs per unit: Actual experience for current year: 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.Labor rate variance.
d.Labor efficiency variance.
e.Variable overhead rate variance.
f.Variable overhead efficiency variance.

Question

Bronfenbrenner Co.uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours.The following information is given:
Standard costs per unit:  Actual experience for current year:  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.Labor rate variance.
d.Labor efficiency variance.
e.Variable overhead rate variance.
f.Variable overhead efficiency variance.

Quizplus · Accepted Answer

The Answer of Bronfenbrenner Co.uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours.The following information is given:
Standard costs per unit:  Actual experience for current year:  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.Labor rate variance.
d.Labor efficiency variance.
e.Variable overhead rate variance.
f.Variable overhead efficiency variance.