Fropf Inc. 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 labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate
Direct materials 9.30 liters $8.90 per liter
Direct labor 0.70 hours $25.70 per hour
Variable manufacturing overhead 0.70 hours $7.80 per hour

The company has reported the following actual results for the product for September:

Actual output 11,500 units
Raw materials purchased 62,350 ounces
Actual cost of raw materials purchased $386,210
raw materials used in production 52,020 ounces
Actual direct labor hours 3,450 hours
Actual direct labor cost $88,880
Actual variable overhead cost $21,295

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.

b. SQ = 9,900 units × 7.7 liters per unit = 76,230 litersMaterials quantity variance = (AQ × SP) − (SQ × SP)= (AQ – SQ) × SP= (76,240 liters – 76,230 liters) × $7.30 per liter= 10 liters × $7.30 per liter= $73 U

c. Labor rate variance = (AH × AR) − (AH × SR)= $120,302 − (4,650 hours × $24.7 per hour)= $120,302 − $114,855= $5,447 U

d. SH = 9,900 units × 120,302.00 hours per unit = 4,950 hoursLabor efficiency variance = (AH × SR) - (SH × SR)= (AH – SH) × SR= (4,650 hours – 4,950 hours) × $24.70 per hour

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= (−300 hours) × $24.70 per hour= $7,410 F

e. Variable overhead rate variance = (AH × AR) − (AH × SR)= $23,614 − (4,650 hours × $6 per hour)= $23,614 − ($28,830)= $5,216 Ff.SH = 9,900 units × 0.50 hours per unit = 4,950 hoursVariable overhead efficiency variance = (AH × SR) – (SH × SR)= (AH – SH) × SR= (4,650 hours – 4,950 hours) × $6 per hour= (−300 hours) × $6.20 per hour= $1,860 F