Direct Labor VariancesLa Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:Quantity of direct labor used420 hrs.Actual rate for direct labor$12.10 per hr.Bicycles completed in July200 bicyclesStandard direct labor per bicycle2 hrs.Standard rate for direct labor$12.30 per hr.a. Determine the direct labor rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and anunfavorable variance as a positive number.Direct labor rate varianceFavorableDirect labor time varianceUnfavorableTotal direct labor cost variance $Unfavorableb. How much direct labor should be debited to Work in Process?Feedback

Direct labor variance: Labor cost variance is the difference between the standard labor cost for the…

Answered: Direct Labor Variances La Barte Company…

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 Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $16.80 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.9 lbs. Standard price per lb. of brass $11.25 Actual price per lb. of brass $11.50 Actual lbs. of brass used during the week 12,916 lbs. Number of units produced during the week 6,600 Actual wage per hour $17.30 Actual hours for the week (30 employees × 36 hours) 1,080 Required: a. Determine the standard cost per unit 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…
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. 15,300 units used 64,400 hours at an hourly rate of $19.60 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. Open spreadsheet What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $fill in the blank 2 b. Direct labor time variance $fill in the blank 4 c. Direct labor cost variance $fill in the blank 6
Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03 hours. During the month of April, 900,000 bottles were produced using 25,200 labor hours@ $15.00. The standard wage rate is $13.50 per hour. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance Labor efficiency variance
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of direct labor used 800 hrs Actual rate for direct labor $11.50 per hr. Bicycles completed in October 380 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $11.70 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance $ Total Direct Labor Cost Variance $ b. How much direct labor should be debited to Work in Process?
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of direct labor used 590 hrs. Actual rate for direct labor $12.50 per hr. Bicycles completed in October 280 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $12.80 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance b. How much direct labor should be debited to Work in Process?fill in the blank
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…
Direct Labor Variances The following data relate to labor cost for production of 4,100 cellular telephones: Actual: 2,750 hrs. at $13.00 Standard: 2,710 hrs. at $13.30 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance $ Time variance $ Total direct labor cost variance b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
Direct Labor Variances Death Valley Bicycle Company manufactures mountain bikes. The following data for October of the current year are available: Quantity of direct labor used 500 hrs. Actual rate for direct labor $13.20 per hr. Bicycles completed in October 240 Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $13.50 per hr. Planned bicycles for October 270 Determine the direct labor rate and time variances. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Rate variance $fill in the blank 1 Time variance fill in the blank 3 Total direct labor cost variance $fill in the blank 5
Subject: acounting
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lion athletics company manufactures commuter bicycles from recycled materials. the following data for october are available: quantity of direct labor used- 5,000 hours actual rate for direct labor- $22.75 per hour bicycles completed in october- 800 bicycles standard direct labor per bicycle- 6 hours standard rate for direct labor- $24 per hour NOW FIND: direct labor rate variance: direct labor time variance: total direct labor cost variance:
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