PROBLEM 10â??15 Comprehensive Variance Analysis [LO1, LO2, LO3]Helix Company produces several produc

PROBLEM 10–15 Comprehensive Variance Analysis [LO1, LO2, LO3]Helix Company produces several products in its factory, including a karate robe. The companyuses a standard cost system to assist in the control of costs. According to the standards that havePROBLEM 10–14 Comprehensive Variance Analysis [LO1, LO2, LO3]Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costsrelating to a single kit are given below:Standard Costs and Variances 453During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. Thefollowing actual costs were recorded during the month:Raw Material Standard Labor TimeProduct X342 Y561 Sintering FinishingAlpha8 . . . . . . . . . . . . 1.8 kilos 2.0 liters 0.20 hours 0.80 hoursZeta9 . . . . . . . . . . . . . 3.0 kilos 4.5 liters 0.35 hours 0.90 hoursInformation relating to materials purchased and materials used in production during Mayfollows:Material Purchases Purchase Cost Standard Price Used in ProductionX342 . . . . . . . . . . . 14,000 kilos $51,800 $3.50 per kilo 8,500 kilosY561 . . . . . . . . . . . 15,000 liters $19,500 $1.40 per liter 13,000 litersThe following additional information is available:a. The company recognizes price variances when materials are purchased.b. The standard labor rate is $20.00 per hour in Sintering and $19.00 per hour in Finishing.c. During May, 1,200 direct labor-hours were worked in Sintering at a total labor cost of $27,000,and 2,850 direct labor-hours were worked in Finishing at a total labor cost of $59,850.d. Production during May was 1,500 Alpha8s and 2,000 Zeta9s.been set for the robes, the factory should work 780 direct labor-hours each month and produce1,950 robes. The standard costs associated with this level of production are as follows:TotalPer Unitof ProductDirect materials . . . . . . . . . . . . . . . . . . . . . . . . $35,490 $18.20Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,020 3.60Variable manufacturing overhead (based ondirect labor-hours) . . . . . . . . . . . . . . . . . . . . $2,340 1.20$23.00TotalPer Unitof ProductDirect materials (6,000 yards) . . . . . . . . . . $36,000 $18.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $7,600 3.80Variable manufacturing overhead . . . . . . . $3,800 1.90$23.70At standard, each robe should require 2.8 yards of material. All of the materials purchased duringthe month were used in production.Required:Compute the following variances for April:1. The materials price and quantity variances.2. The labor rate and efficiency variances.3. The variable manufacturing overhead rate and efficiency variances.

"Is this question part of your assignment? We can help"

ORDER NOW