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14.10 $4 13.30 14.00 13.00 %24 %24

14.10 $4 13.30 14.00 13.00 %24 %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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can I have assistance on question 1 section b of this problem.

I found the question answered, however section b i couldn't understand or see

question 1 a is anwered question 2 i answered

Managerial accounting 23-2PB

 

 

**Direct Labor Variance Analysis** This analysis evaluates the direct labor cost variances for women's and men's coats. It breaks down into two components: rate variance and time variance, each of which is further divided. ### Rate Variance - **Women's Coats:** - **Actual Rate:** $14.10 - **Standard Rate:** $14.00 - **Variance:** $0.10 - **Actual Time:** 1,825 hours - **Direct Labor Rate Variance:** $182.50 (unfavorable) - **Men's Coats:** - **Actual Rate:** $13.30 - **Standard Rate:** $13.00 - **Variance:** $0.30 - **Actual Time:** 2,800 hours - **Direct Labor Rate Variance:** $840.00 (unfavorable) - **Total Variance:** $1,022.50 (unfavorable) ### Time Variance - **Women's Coats:** - **Actual Time:** 1,825 hours - **Standard Time:** Not specified - **Variance:** Not calculated - **Direct Labor Time Variance:** Not specified - **Men's Coats:** - **Actual Time:** 2,800 hours - **Standard Time:** Not specified - **Variance:** Not calculated - **Direct Labor Time Variance:** Not specified ### Total Direct Labor Cost Variance - **Total Actual Cost:** Not specified - **Total Standard Cost:** Not specified - **Total Direct Labor Cost Variance:** Not calculated **Explanation of Sections:** - **Rate Variance** examines the difference between the actual labor rate and the standard labor rate, multiplied by actual time. Positive values indicate an unfavorable variance, implying higher costs. - **Time Variance** measures the difference in actual time worked versus the standard time expected, evaluated at the standard rate. Details are incomplete in this document. - **Visual Summary:** - The table summarizing costs outlines the rate and time components for both categories of coats, providing a total unfavorable variance of $1,022.50, attributed to rate differences. This analysis supports understanding and controlling labor costs by highlighting areas where actual expenses exceeded expectations.
Transcribed Image Text:**Direct Labor Variance Analysis** This analysis evaluates the direct labor cost variances for women's and men's coats. It breaks down into two components: rate variance and time variance, each of which is further divided. ### Rate Variance - **Women's Coats:** - **Actual Rate:** $14.10 - **Standard Rate:** $14.00 - **Variance:** $0.10 - **Actual Time:** 1,825 hours - **Direct Labor Rate Variance:** $182.50 (unfavorable) - **Men's Coats:** - **Actual Rate:** $13.30 - **Standard Rate:** $13.00 - **Variance:** $0.30 - **Actual Time:** 2,800 hours - **Direct Labor Rate Variance:** $840.00 (unfavorable) - **Total Variance:** $1,022.50 (unfavorable) ### Time Variance - **Women's Coats:** - **Actual Time:** 1,825 hours - **Standard Time:** Not specified - **Variance:** Not calculated - **Direct Labor Time Variance:** Not specified - **Men's Coats:** - **Actual Time:** 2,800 hours - **Standard Time:** Not specified - **Variance:** Not calculated - **Direct Labor Time Variance:** Not specified ### Total Direct Labor Cost Variance - **Total Actual Cost:** Not specified - **Total Standard Cost:** Not specified - **Total Direct Labor Cost Variance:** Not calculated **Explanation of Sections:** - **Rate Variance** examines the difference between the actual labor rate and the standard labor rate, multiplied by actual time. Positive values indicate an unfavorable variance, implying higher costs. - **Time Variance** measures the difference in actual time worked versus the standard time expected, evaluated at the standard rate. Details are incomplete in this document. - **Visual Summary:** - The table summarizing costs outlines the rate and time components for both categories of coats, providing a total unfavorable variance of $1,022.50, attributed to rate differences. This analysis supports understanding and controlling labor costs by highlighting areas where actual expenses exceeded expectations.
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