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Silmon Corporation makes a product with the following standard costs:
In June the company produced 5,400 units using 34,190 grams of the direct material and 2,700 direct labor-hours. During the month the company purchased 25,300 grams of the direct material at a price of $6.80 per gram. The actual direct labor rate was $14.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
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 quantity variance (F or U)B. direct materials price variance (F or U)C. direct labor efficiency variance (F or U)D. direct labor rate variance (F or U)E. variable overhead efficiency variance (F or U)F. variable overhead rate variance (F or U)
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