and inspecteu Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $14 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost $17 per guitar. The labor standards for Springsteen's two production departments are as follows: Construction Department: 5 hours of direct labor at $20 per hour Finishing Department: 3 hours of direct labor at $17 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventories in either production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 690 guitars, and 490 guitars were sold on account for $495 each. 4. The company purchased 7,900 pounds of veneered wood at a price of $14.50 per pound. 5. Actual usage of veneered wood was 6,400 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 790 guitars were purchased at a cost of $9,190. 7. The Construction Department used 3,200 direct-labor hours. The total direct-labor cost in the Construction Department was $60,800. 8. The Finishing Department used 2,150 direct-labor hours. The total direct-labor cost in that department was $38,700. 9. There were no direct-material variances in the Finishing Department. oblem 10-47 Part 2 Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department and direct-labor variances in the Finishing Department. (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance.) Dau S of G H Next
and inspecteu Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $14 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost $17 per guitar. The labor standards for Springsteen's two production departments are as follows: Construction Department: 5 hours of direct labor at $20 per hour Finishing Department: 3 hours of direct labor at $17 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventories in either production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 690 guitars, and 490 guitars were sold on account for $495 each. 4. The company purchased 7,900 pounds of veneered wood at a price of $14.50 per pound. 5. Actual usage of veneered wood was 6,400 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 790 guitars were purchased at a cost of $9,190. 7. The Construction Department used 3,200 direct-labor hours. The total direct-labor cost in the Construction Department was $60,800. 8. The Finishing Department used 2,150 direct-labor hours. The total direct-labor cost in that department was $38,700. 9. There were no direct-material variances in the Finishing Department. oblem 10-47 Part 2 Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department and direct-labor variances in the Finishing Department. (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance.) Dau S of G H Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:lulu direct lahor variances in the Finishing Donartment IDnfor to Evhihit 107 Evhihit 102 and Evhihit 10 for quidanc
Required information
compiele und quesLIVII by Chery your answers inn liit laus vtise.
Req 2A
Actual Labor Cost
Actual Hours
Req 2B
Complete the table below that compute the July direct-labor rate and efficiency variances in the Construction Department. (Indicate th
"Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate"
3,200
hours used
X
X
Req 2C
$ 60,800
Actual Rate
$ 19.00
per hour
Req 2D
Direct-labor rate variance
Direct-Labor Rate and Efficiency Variances
Projected Labor Cost
Actual Hours
hours used
Favorable
X
X
< Prev
Standard Rate
Direct-labor variance
Favorable
<
per hour
Req 2B
5 6
Standard Hours
Favorable
Standard Labor Cost
hours allowed
of 6
Direct-labor efficiency variance
Req 2D
‒‒‒
x
>
X
Next >
Standard
Rate
per hour
Transcribed Image Text:and inspected.
Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the
production process. The veneered wood used in the guitars has a standard price of $14 per pound. The other parts
needed to complete each guitar, such as the bridge and strings, cost $17 per guitar. The labor standards for Springsteen's
two production departments are as follows:
Saved
Construction Department: 5 hours of direct labor at $20 per hour
Finishing Department: 3 hours of direct labor at $17 per hour
The following pertains to the month of July.
1. There were no beginning or ending work-in-process inventories in either production department.
2. There was no beginning finished-goods inventory.
Problem 10-47 Part 2
3. Actual production was 690 guitars, and 490 guitars were sold on account for $495 each.
4. The company purchased 7,900 pounds of veneered wood at a price of $14.50 per pound.
5. Actual usage of veneered wood was 6,400 pounds of the wood purchased during July.
6. Enough parts (bridges and strings) to finish 790 guitars were purchased at a cost of $9,190.
7. The Construction Department used 3,200 direct-labor hours. The total direct-labor cost in the Construction Department
was $60,800.
8. The Finishing Department used 2,150 direct-labor hours. The total direct-labor cost in that department was $38,700.
9. There were no direct-material variances in the Finishing Department.
2. Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department and the
July direct-labor variances in the Finishing Department. (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance.)
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