a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Favorable Time variance Unfavorable Total direct labor cost variance Favorable V labor rate than planned. The lower level of experience or training b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower resulted in lesS -v efficient performance. Thus, the actual time required was more v than standard.

a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Favorable Time variance Unfavorable Total direct labor cost variance Favorable V labor rate than planned. The lower level of experience or training b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower resulted in lesS -v efficient performance. Thus, the actual time required was more v than standard.

Name: Direct Labor VariancesThe following data relate to labor cost for pro
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Description: Direct Labor VariancesThe following data relate to labor cost for production of 7,200 cellular telephones:Actual:4,860 hrs. at $14.20Standard:4,780 hrs. at $14.50a. Determine the direct labor rate variance, direct labor time variance, and total dire

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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Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
If a purchasing manager is able to buy direct materials required in the manufacturing of a product at a lower than ‘standard’ cost why may this result in an overall unfavorable total variance for DM’s.
a. Direct materials price variance Unfavorable b. Direct materials quantity variance Favorable c. Direct materials cost variance Unfavorable
а. Standard Cost per Unit for Direct Materials and Direct Labor b. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong с. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong
A labor rate variance is due solely to the difference Between budgeted materials price and actual materials price Between budgeted direct labor hours and actual direct labor hours Between budgeted sales volume and actual sales volume Between budgeted labor price and actual labor price
The following direct materials and direct labor data pertain to the operations of Sunland Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $290 $12.50 per hour per ton per hour $292 per ton Quantities. Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used. 4,200 hours 1,000 tons 4,290 hours 990 tons
< Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down by cost type (materials, labor, overhead) and further by cost variances within cost types and usage or efficiency variances within cost types: Total Manufacturing Cost Variance 7 ↑ Feedback Direct Materials Cost Variance Direct Labor Cost Variance Factory Overhead Cost Variance 7 Direct Materials Price Variance Direct Materials Quantity Variance Direct Labor Rate Variance Direct Labor Time Variance Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Manufacturing…
Should both favorable and unfavorable variances be investigated, or only the unfavorable ones? Explain your response. What if a company found that they had a favorable price variance and an unfavorable quantity variance for direct materials. What might be the cause(s) of this pattern of variances?
"As long as the total actual factory overhead cost is not significantly different from the total standard applied factory overhead cost for the period, there is no need to conduct further analyses of the factory overhead variances." Do you agree? Why, or why not?
Which one of the following may account for an adverse labour efficiency variance? a. Using higher grade materials leading to lower wastage rates O b. Change in labour-market conditions between the setting of the standard and the actual event O c. Higher purchase cost of raw materials d. Using a higher grade of worker than was planned Oe. Poor supervision
based on the attached what is the answer?