Homework Help is Here – Start Your Trial Now!
Business
Accounting
7. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 3.0 ounces Direct labor 0.6 hours Variable 0.6 hours Standard Price or Standard Cost Per Rate Unit $7.10 per ounce $21.30 $21.00 per hour $12.60 $6.00 per hour $3.60 overhead The company reported the following results concerning this product in December: Originally budgeted output Actual output 4,410 units 4,210 units Raw materials used in production 13,000 ounces Actual direct labor-hours Purchases of raw materials 2,896 hours 14,690 ounces $6.90 per ounce Actual price of raw materials Actual direct labor rate Actual variable overhead rate $18.40 per hour $6.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: Calculate the variable overhead efficiency variance for December. 8. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $29 per hour. In April the company produced 7,400 units using 3,940 direct labor-hours. The actual direct labor cost was $82,740. Required: The labor efficiency variance for April is: a. $14,500 Unfavorable b. $14,500 Favorable c. $46,020 Favorable d. $46,020 Unfavorable

7. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 3.0 ounces Direct labor 0.6 hours Variable 0.6 hours Standard Price or Standard Cost Per Rate Unit $7.10 per ounce $21.30 $21.00 per hour $12.60 $6.00 per hour $3.60 overhead The company reported the following results concerning this product in December: Originally budgeted output Actual output 4,410 units 4,210 units Raw materials used in production 13,000 ounces Actual direct labor-hours Purchases of raw materials 2,896 hours 14,690 ounces $6.90 per ounce Actual price of raw materials Actual direct labor rate Actual variable overhead rate $18.40 per hour $6.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: Calculate the variable overhead efficiency variance for December. 8. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $29 per hour. In April the company produced 7,400 units using 3,940 direct labor-hours. The actual direct labor cost was $82,740. Required: The labor efficiency variance for April is: a. $14,500 Unfavorable b. $14,500 Favorable c. $46,020 Favorable d. $46,020 Unfavorable

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 63E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
See similar textbooks
icon
Related questions
Question

General Accounting

7. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 3.0 ounces Direct labor 0.6 hours Variable 0.6 hours Standard Price or Standard Cost Per Rate Unit $7.10 per ounce $21.30 $21.00 per hour $12.60 $6.00 per hour $3.60 overhead The company reported the following results concerning this product in December: Originally budgeted output Actual output 4,410 units 4,210 units Raw materials used in production 13,000 ounces Actual direct labor-hours Purchases of raw materials 2,896 hours 14,690 ounces $6.90 per ounce Actual price of raw materials Actual direct labor rate Actual variable overhead rate $18.40 per hour $6.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: Calculate the variable overhead efficiency variance for December. 8. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $29 per hour. In April the company produced 7,400 units using 3,940 direct labor-hours. The actual direct labor cost was $82,740. Required: The labor efficiency variance for April is: a. $14,500 Unfavorable b. $14,500 Favorable c. $46,020 Favorable d. $46,020 Unfavorable
Transcribed Image Text:7. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 3.0 ounces Direct labor 0.6 hours Variable 0.6 hours Standard Price or Standard Cost Per Rate Unit $7.10 per ounce $21.30 $21.00 per hour $12.60 $6.00 per hour $3.60 overhead The company reported the following results concerning this product in December: Originally budgeted output Actual output 4,410 units 4,210 units Raw materials used in production 13,000 ounces Actual direct labor-hours Purchases of raw materials 2,896 hours 14,690 ounces $6.90 per ounce Actual price of raw materials Actual direct labor rate Actual variable overhead rate $18.40 per hour $6.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: Calculate the variable overhead efficiency variance for December. 8. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $29 per hour. In April the company produced 7,400 units using 3,940 direct labor-hours. The actual direct labor cost was $82,740. Required: The labor efficiency variance for April is: a. $14,500 Unfavorable b. $14,500 Favorable c. $46,020 Favorable d. $46,020 Unfavorable
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS