Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. 15,000 units used 63,300 hours at an hourly rate of $19.55 per hour. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance b. Direct labor time variance c. Direct labor cost variance
Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. 15,000 units used 63,300 hours at an hourly rate of $19.55 per hour. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance b. Direct labor time variance c. Direct labor cost variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:X template
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1 Direct labor variances
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The following data is provided for Bellingham Company:
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Actual labor hours used.
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Using formulas and cell references, perform the required analysis, and input your answers into the
green cells in the Amount column. Select the corresponding type of variance in the dropdowns in
cells D15:D17. Transfer the numeric results for the green entry cells (C15:C17) into the appropriate
fields in CNOWV2 for grading.
Data +
3
$20.00
15,000
63,300
$19.55
000
Amount
C
A ON ... 90%
Formulas
+
43
Edit ...
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Transcribed Image Text:Problem Set: Module 5
1. PR.08.02B
2. TMM.09.02
3. BE.09.02.EXCEL.ALGO
4. BE.09.01.EXCEL.ALGO
5. TMM.08.01
engagenow.com
Direct labor variances
Bellingham Company produces a product that requires 3
standard direct labor hours per unit at a standard hourly rate of
$20.00 per hour. 15,000 units used 63,300 hours at an hourly
rate of $19.55 per hour.
Open spreadsheet
+
This information has been collected in the Microsoft Excel
Online file. Open the spreadsheet, perform the required
analysis, and input your answers in the questions below.
42
a. Direct labor rate variance
b. Direct labor time variance
c. Direct labor cost variance
What is the direct labor (a) rate variance, (b) time variance, and
(c) cost variance? Round your answers to the nearest dollar.
Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
$
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