Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $13.40 per hour. During August,Delmar Incorporated paid its workers $227,070 for 16,820 hours. Delmar Incorporated produced 8,610 widgets during AugustRequired:a. Calculate the direct labor rate variance.Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or"None" for no effect (i.e., zero variance).b. Calculate the direct labor efficiency variance.Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or"None" for no effect (i.e., zero variance).c. Calculate the direct labor spending variance.Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or"None" for no effect (i.e., zero variance).a. Rate Varianceb.Efficiency Variancec. Spending Variance

In conclusion, The direct labor rate variance is $1,682 (favorable),The direct labor efficiency…

Answered: Delmar Incorporated uses a standard…

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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Selena Company applies overhead based on direct labor hours and has the following available for November: Standard: Direct labor hours (DLH) per unit Variable overhead per DLH Fixed overhead per DLH (based on 8,900 DLH) Actual Units produced Direct labor hours Variable overhead Fixed overhead 1,800 8,900 $6,400 $17,500 5 $0.75 $1.90 3. Compute all appropriate variances using the three-variance approach. (with SOLUTION)
Please help me to calculate direct labor rate variance.....??
Blue Devil Inc.’s direct labor cost information for April 2021 is as follows. Standard Costs: Units of Production 7,600 units Hours of Production 0.75 hour Wage Rate $13.60 per hour Actual Costs: Units of Production 7,600 units Total Hours of Production 5,900 hours Wage Rate $13.80 per hour Required: Prepare the journal entries to record standard costs, actual costs, and related variances for direct labor. (Hint: the related accounts include work-in-process, wages payable, rate variance, and efficiency variance)
A. Show the solution for each. Compute in details the Variable Manufacturing Overhead Variances - Spending and Efficiency. B. Show the solution for each. Compute in details the Fixed Manufacturing Overhead Variances - Budget and Volume.
The following information pertains to Shalom Company's direct labor at the end of the month: Standard direct labor rate per hour 6.30 Favorable direct labor rate variance Actual direct labor-hours Standard direct labor-hours Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 P8,400 20,000 21,000 Format of percentages: 88% Words must be in capital letters. What is the actual labor cost?
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output 4 Standard variable overhead rate per standard direct labor-hour $ 44 Good units produced 3,800 Actual direct labor-hours worked 14,675 Actual total direct labor cost $ 537,200 Direct labor efficiency variance $ 19,530 F Actual variable overhead $ 645,700 Required: Compute the direct labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance need help
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Required: Compute the direct labor and variable overhead price and efficiency variances. $ 34 3,600 13,925 $ 510,200 $ 17,670 F $ 473,450 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Marsden Company has three departments occupying the following amount of floor space: 20,000 square feet 10,500 square feet 30,000 square feet Department 1 Department 2 Department 3 How much store rent should be allocated to Department 3 if total rent is equal to $94,000? Note: Do not round Intermediate calculations. Multiple Choice $30,000 $46.612 $16,314 None of the answers are correct.
Example: To continue the example, assume XYZ Company incurred $180,000 of manufacturing expenses and that actual machine hours were 25,000. 1. Calculate the actual overhead rate based on machine hours. 2. Assume the variance is not material to XYZ Company. What journal entry would be made? 3. Assume the variance is material and that the applied overhead included in the ending balances in the work-in-process, finished goods, and cost of goods sold account is $50,000, $100,000, and $350,000, respectively. What amount of variance should be allocated to cost of goods sold?
Douglas Inc. has provided the following data concerning one of the products in its standard cost system. Standard Quantity or Hours per Unit of Output 0.70 hours Inputs Direct labor Standard Price or Rate $20.40 per hour The company has reported the following actual results for the product for January: Actual output 5,100 units 3,380 hours. Actual direct labor-hours Actual direct labor cost The labor efficiency variance for the month is closest to: O $3,876 U O $4.199 F O $4,199 U O $3,876 F $ 74,698
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Upon your review of Shalom Company's standard cost card. You found the following information: Standards: Material Labor Actual: Production Material Labor 5.0 feet per unit @ P4.00 per foot 3.0 hours per unit @ 35.00 per hour 2,800 units produced during the month 14,500 feet used; 15,100 feet purchased @ P3.70 per foot 8,150 direct labor hours @ P36.00 per hour Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the material quantity variance?

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