Assume that Nortel manufactures specialty electronic circuitry though a unique photoelectric process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $13.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded: Direct labor hours used- 2,180 Direct labor cost-$34,000 Units of ZX40 manufactured- 4,600 Please show all work a. Determine the labor rate variance b. Determine the labor efficien variance c. Determine the total flexible budget labor cost variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Please do not give solution in image format thanku
Assume that Nortel manufactures
specialty electronic circuitry though a
unique photoelectric process. One of the
primary products, Model ZX40, has a
standard labor time of 0.5 hour and a
standard labor rate of $13.50 per hour.
During February, the following activities
pertaining to direct labor for ZX40 were
recorded:
Direct labor hours used- 2,180
Direct labor cost- $34,000
Units of ZX40 manufactured- 4,600
Please show all work
a. Determine the labor rate variance
b. Determine the labor efficiency
variance
c. Determine the total flexible budget
labor cost variance
Transcribed Image Text:Assume that Nortel manufactures specialty electronic circuitry though a unique photoelectric process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $13.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded: Direct labor hours used- 2,180 Direct labor cost- $34,000 Units of ZX40 manufactured- 4,600 Please show all work a. Determine the labor rate variance b. Determine the labor efficiency variance c. Determine the total flexible budget labor cost variance
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education