The Koski Company has established standards as follows:Direct material 3.20 pounds @ $5.20/pound =...

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The Koski Company has established standards as follows:Direct material  3.20 pounds @ $5.20/pound = $16.64 per unitDirect labor  2.00 hours @ $9.20/hour = $18.40 per unitVariable overhead  2.00 hours @ $6.20/hour = $12.40 per unitActual production figures for the past year were as follows:Units produced  620 Direct materials used  2,360 pounds Direct materials purchased (4,200 pounds) $22,260 Direct labor cost (1,070 hours) $10,058 Variable overhead cost incurred $6,527 rev: XXXXXXXXXX1.The materials price variance is (Do not round intermediate calculations.):rev: XXXXXXXXXX$236 U$198 U$11,943 U$420 U2.The materials quantity variance is: (Round your answer to nearest dollar amount.)rev: XXXXXXXXXX$1,993 U$1,955 U$10,317 U$1,993 F3.The labor rate variance is (Do not round intermediate calculations.):rev: XXXXXXXXXX$1,350 F$1,350 U$214 U$214 F4.The labor efficiency variance is: (Round your answer to nearest dollar amount.)rev: XXXXXXXXXX$1,350 F$1,564 F$1,350 U$1,564 UI need it to be done 2 hrs please. No more than two hrs
	
Document Preview: The Koski Company has established standards as follows:    Direct material 3.20 pounds @ $5.20/pound = $16.64 per unit  Direct labor 2.00 hours @ $9.20/hour = $18.40 per unit  Variable overhead 2.00 hours @ $6.20/hour = $12.40 per unit   Actual production figures for the past year were as follows:     Units produced 620                 Direct materials used 2,360 pounds    Direct materials purchased (4,200 pounds)$22,260                 Direct labor cost (1,070 hours)$10,058                 Variable overhead cost incurred$6,527                 rev: XXXXXXXXXX  1.   The materials price variance is (Do not round intermediate calculations.):  rev: XXXXXXXXXX $236 U $198 U $11,943 U $420 U  2.   The materials quantity variance is: (Round your answer to nearest dollar amount.)  rev: XXXXXXXXXX $1,993 U $1,955 U $10,317 U $1,993 F  3.   The labor rate variance is (Do not round intermediate calculations.):  rev: XXXXXXXXXX $1,350 F $1,350 U $214 U $214 F  4.   The labor efficiency variance is: (Round your answer to nearest dollar amount.)  rev: XXXXXXXXXX $1,350 F $1,564 F $1,350 U $1,564 U I need it to be done 2 hrs please. No more than two  hrs

David · Accepted Answer

The Koski Company has established standards as follows:
  Direct material 
 3.20 pounds @ $5.20/pound = $16.64 per 
unit 
  Direct labor  2.00 hours @ $9.20/hour = $18.40 per unit 
  Variable overhead  2.00 hours @ $6.20/hour = $12.40 per unit
Actual production figures for the past year were as follows:
  Units produced  620                
  Direct materials used  2,360 pounds   
  Direct materials purchased (4,200 pounds) $22,260                
  Direct labor cost (1,070 hours) $10,058                
  Variable overhead cost incurred $6,527
rev: 02-11-2011
 1.
 Assumption: Here, we assume that the company realizes the materials price variance at 
the time of purchase. Hence the actual purchase pounds of 4200 pounds is used for 
calculation.

The Koski Company has established standards as follows: Direct material 3.20 pounds @ $5.20/pound = $16.64 per unit Direct labor 2.00 hours @ $9.20/hour = $18.40 per unit Variable overhead 2.00 hours...

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