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Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.20 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Unfavorable Favorable Direct Labor Time Variance Favorable v Unfavorable v Total Direct Labor Cost Variance $4 Favorable Unfavorable v

Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.20 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Unfavorable Favorable Direct Labor Time Variance Favorable v Unfavorable v Total Direct Labor Cost Variance $4 Favorable Unfavorable v

FINANCIAL ACCOUNTING
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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Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.20 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Unfavorable $4 Favorable Direct Labor Time Variance Favorable Unfavorable v Total Direct Labor Cost Variance Favorable v $ Unfavorable
Transcribed Image Text:Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.20 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Unfavorable $4 Favorable Direct Labor Time Variance Favorable Unfavorable v Total Direct Labor Cost Variance Favorable v $ Unfavorable
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