Direct Labor Variances Ada Clothes Company produced 25,000 units during April. The Cutting Department used 4,800 direct labor hours at an actual rate of $11.80 per hour. The Sewing Department used 8,000 direct labor hours at an actual rate of $11.50 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 $11.70. 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 Direct Labor Time Variance Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) rate variance and a(n) time variance, resulting in a total cost variance. In contrast, the Sewing Department has a(n) rate variance but has a(n) time variance, resulting in a total cost variance. %24

Direct Labor Variances Ada Clothes Company produced 25,000 units during April. The Cutting Department used 4,800 direct labor hours at an actual rate of $11.80 per hour. The Sewing Department used 8,000 direct labor hours at an actual rate of $11.50 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 $11.70. 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 Direct Labor Time Variance Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) rate variance and a(n) time variance, resulting in a total cost variance. In contrast, the Sewing Department has a(n) rate variance but has a(n) time variance, resulting in a total cost variance. %24

Name: Direct Labor VariancesAda Clothes Company produced 25,000 units durin
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Description: Direct Labor VariancesAda Clothes Company produced 25,000 units during April. The Cutting Department used 4,800 direct labor hours at an actual rate of $11.80 per hour. The SewingDepartment used 8,000 direct labor hours at an actual rate of $11.50 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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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…
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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…
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