Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are: Material (6 kilograms x $5.00 per kilogram) $30.00 Labor (7 hours x $16.00 per hour) 112.00 All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory 1,000 Units completed 7,600 Budgeted output 8,000 Purchases of materials 70,000 Total actual direct labor costs $850,000 Actual direct labor hours 57,400 Materials usage variance $ 3,500 Total materials variance $ 700 None units, 70% complete as to direct labor units units kilograms hours Unfavorable Unfavorable Required: 1. Compute for November: a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number of kilograms of material used in the production process during the month.

Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are: Material (6 kilograms x $5.00 per kilogram) $30.00 Labor (7 hours x $16.00 per hour) 112.00 All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory 1,000 Units completed 7,600 Budgeted output 8,000 Purchases of materials 70,000 Total actual direct labor costs $850,000 Actual direct labor hours 57,400 Materials usage variance $ 3,500 Total materials variance $ 700 None units, 70% complete as to direct labor units units kilograms hours Unfavorable Unfavorable Required: 1. Compute for November: a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number of kilograms of material used in the production process during the month.

Name: Dash Company adopted a standard costing system several years ago. The
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Description: Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., directmaterials and direct labor) of its single product are:$30.00112.00Material (6 kilograms x $5.00 per kilogram)Labor (7 hours x $16.0

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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