Fiber Oil performs oil changes. The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hour changes were performed at Fiber Oil. Oil change technicians worked a total of 250 direct labor hours at an average rate of $25 per hour. Read the requirements Requirement 1. Calculate the direct labor rate variance. Determine the formula for the rate variance, then compute the rate variance for the direct labor. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U). Enter the currency amount in the fo round the final variance amount to the nearest whole dollar. Abbreviations used: DL = Direct labor.) DL rate variance Requirements 1. Calculate the direct labor rate variance. 2. Calculate the direct labor efficiency variance.

Fiber Oil performs oil changes. The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hour changes were performed at Fiber Oil. Oil change technicians worked a total of 250 direct labor hours at an average rate of $25 per hour. Read the requirements Requirement 1. Calculate the direct labor rate variance. Determine the formula for the rate variance, then compute the rate variance for the direct labor. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U). Enter the currency amount in the fo round the final variance amount to the nearest whole dollar. Abbreviations used: DL = Direct labor.) DL rate variance Requirements 1. Calculate the direct labor rate variance. 2. Calculate the direct labor efficiency variance.

Name: **Fiber Oil performs oil changes.** The standard wage rate for oil ch
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Description: **Fiber Oil performs oil changes.** The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hours) per oil change. In

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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Frame It Up Inc manufactures picture frames. During the recent month, the company manufactured 1,510 picture frames using 479 direct labor hours. The company paid the direct labor workers a total of $10,000 for the month. Standards per picture frame for Frame It Up required 0.45 direct labor hours at a cost of $19.69 per hour. What is the direct labor efficiency variance? Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s standard labor cost of producing one unit of Product DD is 1.8 hours at a rate of $10.1 per hour. During August, 2,515 hours were incurred at a cost of $12.9 per hour to produce 1,087 units of Product DD. Bailey’s direct labor efficiency variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: -5,639.84U Correct Answer: 5,640 ± 1 (U)
ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual total overhead $73,060 Actual fixed overhead $32,000 Actual machine hours 10,000 Standard hours for the units produced 9,400 Standard variable overhead rate $4.40 What is the variable overhead efficiency variance? Enter the amount as positive number. Variable overhead efficiency variance $
Verde Company produces wheels for bicycles. During the year, 660,000 wheels were produced. The actual labor used was 368,000 hours at $9.20 per hour. Verde has the following labor standards: 1) $10.20 per hour; 2) 0.5 hour per wheel. REQUIRED 1. Compute the labor rate variance. 2. Compute the labor efficiency variance.
A chair company set the following standards: Wood per chair: 7.5 feet. Cost per foot: $4.25. In June, it manufactured 20,000 chairs. The company purchased and used 300,000 feet of wood for $3.42 per foot. Calculate the materials price and efficiency variances.
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K Goldman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.2 hour per glass, at a cost of $13 per hour. The actual results for one month's production of 7,200 glasses were 0.4 hours per glass, at a cost of $14 per hour. Calculate the direct labor cost variance and the direct labor efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U). × Direct Labor Cost Variance Select the formula, then enter the amounts and compute the efficiency variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U). Direct Labor Efficiency × × = Variance
Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. 15,400 units used 64,300 hours at an hourly rate of $19.30 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar.
Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $13.40 per hour. During August, Delmar Incorporated paid its workers $227,070 for 16,820 hours. Delmar Incorporated produced 8,610 widgets during August Required: a. Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct labor efficiency variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b.Efficiency Variance c. Spending Variance
Titus Company produced 6,800 units of a product that required 3 standard hours per unit. The standard fixed overhead cost per unit is $1.70 per hour at 20,600 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number. Round your answer to the nearest dollar.
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 3.3 hours of labor at a cost of $39 per hour. The firm actually completed 650 Class 2 returns. Actual labor hours averaged 2.9 hours per return and actual labor cost amounted to $49 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance). a. Total labor variance b. Total labor price variance c. Total labor usage variance
Subject: Acounting