2. Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520 (HINT - this is helpful to solve the problem). NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What was the standard rate per hour ? standard rate per hour. (with "$" round answer to two decimal places with commas as needed) If the workers were paid $3.90 per hour, how many actual hours were worked ? actual hours. (round answer to whole number with commas as needed) Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Labor Rate ? ? Labor Time ? ? Total DL Cost Variance ? ?
2. Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520 (HINT - this is helpful to solve the problem). NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What was the standard rate per hour ? standard rate per hour. (with "$" round answer to two decimal places with commas as needed) If the workers were paid $3.90 per hour, how many actual hours were worked ? actual hours. (round answer to whole number with commas as needed) Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Labor Rate ? ? Labor Time ? ? Total DL Cost Variance ? ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520 (HINT - this is helpful to solve the problem).
NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes.
- What was the standard rate per hour ? standard rate per hour. (with "$" round answer to two decimal places with commas as needed)
- If the workers were paid $3.90 per hour, how many actual hours were worked ? actual hours. (round answer to whole number with commas as needed)
- Complete the following table of variances and their conditions:
Variance | Variance Amount | Favorable (F) or Unfavorable (U) |
Labor Rate |
? |
? |
Labor Time |
? |
? |
Total DL Cost Variance |
? |
? |
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