Records at the Farnsworth Corporation contained the following data for the most recent period of activity:Actual total direct labor cost$502,460Actual direct labor-hours workedStandard direct labor-hours allowed for actual output (flexible budget)Direct labor price varianceActual variable overheadStandard variable overhead rate per standard direct labor-hourVariable overhead is applied based on standard direct labor-hours allowed.Direct laborRequired:Compute the labor and variable overhead price and efficiency variances.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Price varianceEfficiency varianceVariable overheadPrice varianceEfficiency variance15,26014,520$46,900 F$ (28,440) U$ 15,540 U$ 348,900$21

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Description: Records at the Farnsworth Corporation contained the following data for the most recent period of activity:Actual total direct labor cost$502,460Actual direct labor-hours workedStandard direct labor-hours allowed for actual output (flexible budget)Di

DIRECT LABOUR COST VARIANCEDirect Labour Cost Variance is the difference between the actual direct…

Business

Accounting

Actual total direct labor cost Actual direct labor-hours worked i Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour $502,460 15,260 14,520 $46,900 F $ 348,900 $21

Actual total direct labor cost Actual direct labor-hours worked i Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour $502,460 15,260 14,520 $46,900 F $ 348,900 $21

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...

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