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Kropf 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 107,900 liters
Actual cost of raw materials purchased $ 979,500
Raw materials used in production 106,980 liters
Actual direct labor-hours 7,750 hours
Actual direct labor cost $ 205,302
Actual variable overhead cost $ 55,414
Required:a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhead efficiency variance for September.
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