Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of theNote: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.OctoberActual CostActual Cost00$00$$001010November$$00Standard CostStandard Cost Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.20 per hour. During October, the company actuallyuses 20,000 hours of direct labor at a $328,000 total cost to produce 6,800 units. In November, the company uses 24,000 hours ofdirect labor at a $394,800 total cost to produce 7,200 units of product.AH Actual HoursSH Standard HoursAR Actual RateSR Standard Rate(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these twomonths.(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigatefurther?Complete this question by entering your answers in the tabs below..Required 1 Required 2Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months.Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.October

Variance arises when the actual costs is different from the standard costs. If the standard cost is…

Answered: Javon Company set standards of 3 hours…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Total Unit Actual Costs Costs Direct Material: Standard (2 lb. @ $10/lb.) Actual (2,200 lb. @ $9.80/lb.) Direct Labor: Variable Overhead: Standard (2 hr. @ $20/hr.) Actual (2,400 hrs. @ $20.20/hr.) Total What is the labor rate variance? Standard (0.5 hr. @ $4/hr.) Actual Select one: O O O O b. a. 400 U $400 F C. $480 U d. $480 F e. None of the above $20 $40 $2 $21,560 $48,480 $8,700 $62 $78,740
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,700 units. Direct materials (133,500 pounds @ $3.70 per pound) $493,950 416,060 Direct labor (29,300 hours @ $14.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $60 42 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Garrison Manufacturing has the following standard cost sheet for one of its products: direct materials (5m @ $6) $30 Direct labour (1.5 hours @$ 10) 15 variable overhead ( 1 hour @ $7) 7 Fixed overhead (2 hours @ $3) 6 Standard unit cost $58 *Rate based on expected activity of 12,000 hours. During the most recent year, the following actual results were recorded: production 13,000 units fixed overhead $36,000 Variable overhead $60,000 Direct materials (62,500m purchased) $382,500 direct labour (15,900 hours)…
A company uses the following standard costs to produce a single unit of output. 6 pounds at $0.60 per pound 0.5 hour at $9.00 per hour = 0.5 hour at $4.30 per hour = Direct materials Direct labor Manufacturing overhead During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $0.70 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $42,369 based on 4,870 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,500 and fixed manufacturing overhead incurred was $18,000. Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $2,631 favorable $1,461 favorable $1,170 unfavorable $1,170 favorable $ 3.60 $ 4.50 $ 2.15 $1,461 unfavorable
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The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost Production (units) April $111,100 276,200 May 82,600 163,200 June 106,300 244,600 Using the high-low method, the variable cost per unit and the total fixed costs are Round your intermediate calculations to two decimal places. a.$2.50 per unit and $4,205, respectively b.$4.50 per unit and $4,205, respectively c.$0.25 per unit and $42,050, respectively d.$0.45 per unit and $21,025, respectively
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Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) $ 30 Direct labor (2 hours @ $17 per hour) 34 Overhead (2 hours @ $18.50 per hour). 37 Standard cost per unit $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials. $ 45,000 Indirect labor 180,000 Power 45,000 Maintenance 90,000 360,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery 80,000 Taxes and insurance 12,000 Supervisory salaries. 79,000 Total fixed overhead costs 195,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per…
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