Direct Labor Variances The following data relate to labor cost for production of 22,000 cellular telephones: Actual: 4,220 hrs. at $44.50 Standard: 4,160 hrs. at $46.00 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 varlance as a positive number. Favorable Rate variance Unfavorable Time variance Favorable Total direct labor cost variance labor rate than planned. The lower level of experience or training may have b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower resulted in less efficient performance. Thus, the actual time required was more than standard.
Direct Labor Variances The following data relate to labor cost for production of 22,000 cellular telephones: Actual: 4,220 hrs. at $44.50 Standard: 4,160 hrs. at $46.00 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 varlance as a positive number. Favorable Rate variance Unfavorable Time variance Favorable Total direct labor cost variance labor rate than planned. The lower level of experience or training may have b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower resulted in less efficient performance. Thus, the actual time required was more than standard.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Direct Labor Variances
The following data relate to labor cost for production of 22,000 cellular telephones:
Actual:
4,220 hrs, at $44.50
Standard:
4,160 hrs. at $46.00
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.
Favorable
Rate variance
Unfavorable
Time variance
%$4
Favorable
Total direct labor cost variance
labor rate than planned. The lower level of experience or training may have
b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower
than standard.
resulted in less
efficient performance. Thus, the actual time required was more](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4efd80af-eb22-4e98-af6a-ba63f6fdc047%2F90c8ba72-81ca-47fd-b464-6c8523cf3260%2Fznyljh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:еВook
Show Me How
Direct Labor Variances
The following data relate to labor cost for production of 22,000 cellular telephones:
Actual:
4,220 hrs, at $44.50
Standard:
4,160 hrs. at $46.00
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.
Favorable
Rate variance
Unfavorable
Time variance
%$4
Favorable
Total direct labor cost variance
labor rate than planned. The lower level of experience or training may have
b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower
than standard.
resulted in less
efficient performance. Thus, the actual time required was more
![еBook
Show Me How
Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week
follows:
Standard wage per hr.
$15.00
Standard labor time per faucet
40 min.
Standard number of Ib. of brass
3 lb.
Standard price per Ib. of brass
$2.40
Actual price per Ib. of brass
$2.50
Actual Ib. of brass used durìng the week
14,350 lb.
Number of faucets produced during the week
4,800
Actual wage per hr.
$14.40
Actual hrs. for the week
3,240 hrs.
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 variance, direct materials quantity variance, and total direct materials cost variance. Round your ansswers to two decimal places, if necessary. Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
Direct materials price variance
24
Unfavorable v
Favorable
Direct materials quantity variance
Total direct materials cost variance
$4
Unfavorable v
c. 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 posítive number.
Direct labor rate variance
$4
Favorable
Unfavorable v
Direct labor time variance
Total direct labor cost variance
Favorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4efd80af-eb22-4e98-af6a-ba63f6fdc047%2F90c8ba72-81ca-47fd-b464-6c8523cf3260%2Fjk4ltnk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:еBook
Show Me How
Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week
follows:
Standard wage per hr.
$15.00
Standard labor time per faucet
40 min.
Standard number of Ib. of brass
3 lb.
Standard price per Ib. of brass
$2.40
Actual price per Ib. of brass
$2.50
Actual Ib. of brass used durìng the week
14,350 lb.
Number of faucets produced during the week
4,800
Actual wage per hr.
$14.40
Actual hrs. for the week
3,240 hrs.
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 variance, direct materials quantity variance, and total direct materials cost variance. Round your ansswers to two decimal places, if necessary. Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
Direct materials price variance
24
Unfavorable v
Favorable
Direct materials quantity variance
Total direct materials cost variance
$4
Unfavorable v
c. 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 posítive number.
Direct labor rate variance
$4
Favorable
Unfavorable v
Direct labor time variance
Total direct labor cost variance
Favorable
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