DATA ndard direct labor hours per unit ndard hourly rate ts produced ual labor hours used ual hourly rate 3 $22.00 15,700 61,400 $19.85 ing formulas and cell references, perform the required analysis, and input your answers into the en cells in the Amount column. Select the corresponding type of variance in the dropdowns in Is D15:D17. Transfer the numeric results for the green entry cells (C15:C17) into the appropriate ds in CNOWv2 for grading. Direct labor rate variance Direct labor time variance Direct labor cost variance Amount Formulas
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.
Direct labor variances
Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $22.00 per hour. 15,700 units used 61,400 hours at an hourly rate of $19.85 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.
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