Hallaway produces gears for the Tree Motorcycle Company. At the beginning of the year, they had the following standard costs for one batch of gears: Direct labour (2 hours @ $15.00 per hour): $30.00 The actual results for the year are: Batches produced: $70,000 Direct labour hours: $135,000 Direct labour cost per hour: $15.50 Required: Calculate the labour variances and use your solution to answer the following questions. The amount of the direct labour rate variance, also called the direct labour price variance, is $___ Indicate if the direct labour rate variance is favourable (enter the letter F) or unfavourable (enter the letters UF). The amount of the direct labour efficiency variance, also called the direct labour usage variance, is $_______ Indicate if the direct labour efficiency variance is favourable (enter the letter F) or unfavourable (enter the letters UF). The total labour variance, also called the direct labour flexible budget variance, is $______________ Indicate if the total labour variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

Hallaway produces gears for the Tree Motorcycle Company. At the beginning of the year, they had the following standard costs for one batch of gears: Direct labour (2 hours @ $15.00 per hour): $30.00 The actual results for the year are: Batches produced: $70,000 Direct labour hours: $135,000 Direct labour cost per hour: $15.50 Required: Calculate the labour variances and use your solution to answer the following questions. The amount of the direct labour rate variance, also called the direct labour price variance, is $_ Indicate if the direct labour rate variance is favourable (enter the letter F) or unfavourable (enter the letters UF). The amount of the direct labour efficiency variance, also called the direct labour usage variance, is $_ Indicate if the direct labour efficiency variance is favourable (enter the letter F) or unfavourable (enter the letters UF). The total labour variance, also called the direct labour flexible budget variance, is $__________ Indicate if the total labour variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

Name: Hallaway produces gears for the Tree Motorcycle Company. At the begin
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Description: Hallaway produces gears for the Tree Motorcycle Company. At the beginning of the year, they had the following standardcosts for one batch of gears:Direct labour (2 hours @ $15.00 per hour): $30.00The actual results for the year are:Batches produced:

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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