Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $40,000 unfavorable; Direct labor efficiency variance = $93,000 (?). The standard calls for 2 direct labor hours per unit of output at $31 per labor hour (SP). The standard direct labor hours allowed for the units manufactured (SQ) is 15 percent more than the total direct labor hours worked (AQ) in August. How many units of the product were produced in August? Multiple Choice 10,175. 10,625. 10,225. 9,775. 11,500.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Q44
Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $40,000 unfavorable; Direct labor efficiency variance = $93,000 (?). The standard calls for 2 direct labor hours per unit of output at $31 per labor hour (SP). The standard direct labor hours allowed for the units manufactured (SQ) is 15 percent more than the total direct labor hours worked (AQ) in August.
How many units of the product were produced in August?
-
10,175.
-
10,625.
-
10,225.
-
9,775.
-
11,500.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
