Direct Labor Variances The following data relate to labor cost for production of 4,300 cellular telephones: 2,930 hrs. at $15.50 2,880 hrs. at $15.80 Actual: Standard: 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 $ $ Favorable Unfavorable Favorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have 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 4,300 cellular telephones: 2,930 hrs. at $15.50 2,880 hrs. at $15.80 Actual: Standard: 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 $ $ Favorable Unfavorable Favorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have resulted in less ✓ efficient performance. Thus, the actual time required was more than standard.

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Description: Direct Labor VariancesThe following data relate to labor cost for production of 4,300 cellular telephones:2,930 hrs. at $15.502,880 hrs. at $15.80Actual:Standard:a. Determine the direct labor rate variance, direct labor time variance, and total dire

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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Hello, I have a follow-up question. For parts a, b, and c are each of the calculations favorable or unfavorable?
Direct Materials Variances The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 56,600 lbs. at $1.8 per lb. Standard: 54,900 lbs. at $1.85 per lb. a. 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 sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance Total Direct Materials Cost Variance $ b. The direct materials price variance should normally be reported to the When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the
Direct Materials Variances
Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 8.5 ounces 0.6 hours 0.6 hours. Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for April: 6,100 units 55,050 ounces Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost $ 303,010 51,860 ounces 3,360 hours Standard Price or Rate $6.60 per ounce $24.80 per hour $ 4.90 per hour $ 86,810 $ 15,717 Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the…
calculate the variances (f) Total Fixed Overhead Variance (d) Total Manufacturing Overhead Variance (a) Total Flexible Budget Product Cost Variance Total Flexible Budget Product Cost Variance (a) Total Direct Total Direct Total Manufacturing Materials Variance Labor Variance Overhead Variance (b) (c) (d) Direct Materials Direct Materials Direct Labor Direct Labor Total Variable Total Fixed Cost Variance Efficiency Variance Cost Variance Efficiency Variance Overhead Variance Overhead Variance $180 F $145 U $360 U $555 F (e) (f) Variable Overhead Variable Overhead Fixed Overhead Cost Variance Efficiency Variance Cost Variance…
For each of the following independent cases, fill in the missing amounts in the table: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
Direct Labor Variances The following data relate to labor cost for production of 33,000 cellular telephones: Actual: 6,330 hrs. at $49.50 Standard: 6,240 hrs. at $51.00 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. 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 Materials Variances The following data relate to the direct materials cost for the production of 2,300 automobile tires: Actual: 50,800 Ib. at $2.05 Standard: 49,300 Ib. at $2.10 a. 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 sign and an unfavorable variance as a positive number. Price variance Favorable Quantity variance Unfavorable Total direct materials cost variance Unfavorable b. The direct materials price variance should normally be reported to the Purchasing Department V. If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor - V. If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department
Determine the variances for A, B, and C.
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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: 51,100 lbs. at $1.75 per lb. Standard: 49,600 lbs. at $1.8 per lb. a. 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 sign and an unfavorable variance as a positive number. Direct Materials Price Variance $fill in the blank 1 Direct Materials Quantity Variance $fill in the blank 3 Total Direct Materials Cost Variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the .
$6.00 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Amount Favorable/Unfavorable Controllable variance Volume variance Total factory overhead cost variance %24 %24 %24