Glassica, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.6 hour per glass, at a cost of 20.00 per hour. The actual results for one month's production of 8,000 glasses is 0.8 hours per glass, at a cost of $19.00 per hour. The direct labor cost variance is $6,400 F $9,100 U er $9,100 F $25,600 F $6,400 U

Glassica, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.6 hour per glass, at a cost of 20.00 per hour. The actual results for one month's production of 8,000 glasses is 0.8 hours per glass, at a cost of $19.00 per hour. The direct labor cost variance is $6,400 F $9,100 U er $9,100 F $25,600 F $6,400 U

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Newbill Enterprises recently used 34,000 labor hours to produce 11,200 completed units. According to manufacturing specifications, each unit is anticipated to take 2.95 hours to complete. The company's actual payroll cost amounted to S673,200. If the standard labor cost per hour is $20.20, Newbill's labor rate variance is:
Oxford Company has a materials standard of 2.1 pounds per unit of output. Each pound has a standard price of $12 per pound. During February, Oxford Company paid $64,220 for 4,940 pounds at $13 per pound, which were used to produce 2,500 units of product. What is the direct materials price variance? Multiple Choice $2,600 favorable $5,040 favorable $2,500 unfavorable
April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were used to produce 900 units of product. The direct materials usage variance for last month was: Multiple Choice $200 favorable. $750 unfavorable. $1,800 favorable. $200 unfavorable.
RM1. Your company expected to produce 200 units during July. Each unit was expected to require 2 hours of direct labor. Labor cost was expected to be $10 per hour. Your company actually produced and sold 220 units and used an average of 2.1 labor hours per unit. An actual labor rate was $9.8 per hour. Determine the labor rate and usage variances.
Shelley Company bought 3,000 pounds of materials for $2,850. They used 2,800 pounds to produce 1,000 units of output. Direct labor costs totaled $20,400 for 600 hours of work. Standards have been set as follows: Direct Materials: 2 pounds @ $1.10 per pound Direct Labor: .5 hours @ $32 per hour The labor efficiency variance is: O $1,200 favorable $1,200 unfavorable O $3,200 favorable O $3,200 unfavorable O $2,000 unfavorable
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.5 liters per unit Standard price $ 1.20 per liter The company budgeted for production of 2,400 units in April, and the actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 16,410 liters of the direct material at $1.10 per liter. The direct materials quantity variance is computed based on materials used in production The materials quantity variance for April is: A. $1,908 U B. $810 U C. $1,908 F D. $810 F
Splish Brothers Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2400 units were produced using 5000 hours at $18.300 per hour. The labor price variance was $3600 U. $5100 F. $5100 U. O $1500 U.
Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the fixed factory overhead rate at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895.
Company-A makes a hand soap called Simply Clean. Each bottle has a standard labor cost of 1.25 hours at $30.00 per hour. During June, Company-A manufactured 12,000 bottles. They used 17,000 hours at a cost of $510,000. Calculate the labor time variance, labor rate variance, and total labor variance.
Clay makes all sorts of molds. Its standard quantity of material allowed is 1 foot of wood per 1 foot of mold at a standard price of $3.00 per foot. During August, it purchased 200,000 feet of wood at a cost of $2.00 per foot, which produced only 199,000 feet of mold. Calculate the materials price variance. $200,000 F $700,000 U $600,000 U $400,000 F
The Company designs and manufactures bathtubs for home and commercial applications. The Company recorded the following data for its commercial bathtub production line during the month of March: Standard DL hours per tub 5 Standard overhead rate per DL hour $6.00 Standard overhead cost per unit $30.00 Actual overhead costs $21,375 Actual DL hours 2850 Actual overhead cost per machine hour $7.50 Actual tubs produced 1500 What is the variable manufacturing overhead efficiency variance in March? $27,900 favorable $4275 unfavorable $27,900 unfavorable $4275 favorable
A Company has a material standard of 1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, A Company paid $127,250 for 4,950 pounds, which they used to produce 4,700 units. What is the direct material price variance?