**Handerson Corporation Standard Cost Information**Handerson Corporation manufactures a product with the following standard costs:| Component | Standard Quantity or Hours | Standard Price or Rate ||-------------------|----------------------------|-------------------------|| Direct materials | 8.5 kilos | $6.00 per kilo || Direct labor | 0.4 hours | $20.00 per hour || Variable overhead | 0.4 hours | $6.00 per hour |**August Production Results**The company reported the following results for August:- **Actual output**: 3,200 units- **Raw materials used in production**: 29,030 kilos- **Purchases of raw materials**: 31,600 kilos- **Actual direct labor-hours**: 1,160 hours- **Actual cost of raw materials purchases**: $195,920- **Actual direct labor cost**: $22,736- **Actual variable overhead cost**: $7,540The company applies variable overhead based on direct labor-hours. The calculation of the direct materials purchase variance is done at the point of purchase.**Labor Efficiency Variance**The labor efficiency variance for August is to be calculated using the provided data. This information is crucial for understanding variances in production costs compared to standard expectations and can be utilized for enhancing budgeting and financial performance analysis.

Name: **Handerson Corporation Standard Cost Information**Handerson Corporat
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Handerson Corporation Standard Cost Information**Handerson Corporation manufactures a product with the following standard costs:| Component | Standard Quantity or Hours | Standard Price or Rate ||-------------------|----------------------

Solution: Labor efficiency variance = (Standard hours - Actual hours) * Standard rate Labor efficiency variance = (3200*0.4 - 1160) * $20 = 120 *$20 = $2,400 Favorable

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Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 8.5 kilos Standard Price or Rate Direct materials $ 6.00 er kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920- $ 22,736 $ 7,540 Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varian purchased.

Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 8.5 kilos Standard Price or Rate Direct materials $ 6.00 er kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920- $ 22,736 $ 7,540 Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varian purchased.

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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