Direct Labor Variances Ada Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used 7,000 direct labor hours at an actual rate of $13.30 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 $13.50. 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 Direct Labor Rate Variance Direct Labor Time Variance $ total $ Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) cost variance. In contrast, the Sewing Department has a(n) cost variance. Sewing Department rate variance and a(n) | rate variance but has a(n) time variance, resulting in a total time variance, resulting in a

Direct Labor Variances Ada Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used 7,000 direct labor hours at an actual rate of $13.30 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 $13.50. 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 Direct Labor Rate Variance Direct Labor Time Variance $ total $ Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) cost variance. In contrast, the Sewing Department has a(n) cost variance. Sewing Department rate variance and a(n) | rate variance but has a(n) time variance, resulting in a total time variance, resulting in a

Name: Direct Labor VariancesAda Clothes Company produced 22,000 units durin
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Description: Direct Labor VariancesAda Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used7,000 direct labor hours at an actual rate of $13.30 p

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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Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours per unit of product 2.0 Budgeted finished units for the period 6,800 Actual number of finished units produced 5,200 Standard wage rate per direct labor hour (SP) $ 28.00 Direct labor costs incurred $ 299,000 Actual wage rate per direct labor hour (AP) $ 26.00 The direct labor rate variance for October, rounded to the nearest dollar, was: Multiple Choice $23,000 favorable. $51,200 unfavorable. $2,200 unfavorable. $20,400 favorable. $30,800 unfavorable.
Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $10.80 Standard labor time per faucet 10 min. Standard number of lb. of brass 1.30 lb. Standard price per lb. of brass $9.75 Actual price per lb. of brass $10.00 Actual lb. of brass used during the week 11,600 lb. Number of faucets produced during the week 8,700 Actual wage per hr. $11.10 Actual hrs. per week 1,280 hrs. Required: a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places. b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus…
FIXED FACTORY OVERHEAD VARIANCES AND JOURNAL ENTRIES (YOU MUST SHOW YOUR CALCULATIONS – NO CALCULATIONS, NO CREDIT). Company’s fixed factory overhead is budgeted at $300,000 for the year on an expected annual production level of 5,000 units. Each unit of finished product requires three (3) standard direct labor hours. Actual production in units: 4,950 units Actual direct labor hours worked 15,100 hours Actual fixed factory overhead costs incurred: $298,000 PREPARE JOURNAL ENTRY TO RECOGNIZE THE VARIANCES:
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 14,000 hours for production: Variable overhead costs: Indirect factory labor $44,800 Power and light 10,780 Indirect materials 21,000 Total variable overhead cost $76,580 Fixed overhead costs: Supervisory salaries $61,560 Depreciation of plant and equipment 16,200 Insurance and property taxes 30,240 Total fixed overhead cost 108,000 Total factory overhead cost $184,580 Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $40,560…
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Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $13.80 Standard labor time per faucet 15 min. Standard number of lb. of brass 1.80 lb. Standard price per lb. of brass $10.00 Actual price per lb. of brass $10.25 Actual lb. of brass used during the week 12,800 lb. Number of faucets produced during the week 6,900 Actual wage per hr. $14.20 Actual hrs. per week 1,800 hrs. Required: a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit $ Direct labor standard cost per unit $ Total standard cost per unit $ b. Determine the direct materials price variance, direct…
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH 24,000 $48,000 $108,000 $6.50 Actual data for January were as follows: 22,000 Total factory overhead $147,000 Direct labor hours worked Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the month of November, the company planned for activity of 614 frames, but the actual level of activity was 604 frames. The actual supplies cost for the month was $9,200. The spending variance for supplies cost in November would be closest to: Multiple Choice О $296 F о О $296 U $436 F $436 U
The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June: Standard: Machine hours (MH) per unit 2 Fixed overhead rate per MH $5.00 Budgeted fixed overhead $25,000 Actual: Machine hours 4,800 Fixed overhead $26,200 Units produced 2,600 Calculate the fixed overhead budget variance and volume variance for the month of June.
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