KGoldman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.2 hour perglass, at a cost of $13 per hour. The actual results for one month's production of 7,200 glasseswere 0.4 hours per glass, at a cost of $14 per hour. Calculate the direct labor cost variance andthe direct labor efficiency variance.Select the formula, then enter the amounts and compute the cost variance for direct labor andidentify whether the variance is favorable (F) or unfavorable (U).×Direct Labor CostVarianceSelect the formula, then enter the amounts and compute the efficiency variance for direct laborand identify whether the variance is favorable (F) or unfavorable (U).Direct Labor Efficiency××=Variance

1. Direct Labor Cost Variance:(Actual cost-Standard cost)xActual quantity Direct labor cost variance…

Answered: K Goldman, Inc. manufactures lead…

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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Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $16.70 per hour. Production of 5,200 units required 10,710 hours at an hourly rate of $16.20 per hour. Enter favorable variances as negative numbers. (a) Determine the direct labor rate variance. (b) Determine the direct labor time variance. $4 (c) Determine the cost variance. $
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The standard direct material cost per unit for Willis Group was $152 (= $38 per gallon × 4 gallons per unit). During the period, actual direct materials costs amounted to $2,020,690, materials used totaled 55,475 gallons, and 13,270 units were produced. Required: Compute the direct materials price and efficiency variances for the period. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Beverly Company has determined a standard variable overhead rate of $3.40 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,400 actual direct labor hours in the production of 2,900 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). variable overhead rate variance variable overhead efficiency variance over-or underapplied variable overhead
Gorman Company produced 13,000 book bags in June, and actual amounts were as follows: (Click the icon to view the actual amounts.) Gorman's standards were as follows: (Click the icon to view the standards.) Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Requirements 1. 2. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Compute the cost and volume variances for fixed overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label ea avorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Direct materials cost variance Direct materials efficiency variance = Data table Formula Total…
A company's product requires 3 direct labor hours per unit at a standard rate of $40 per direct labor hour. During the period, the company made 8,010 units, using 23,825 direct labor hours at an actual cost of $42 per direct labor hour, Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance. Indicate whether each variance is favorable or unfavorable. AH = Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ 0 $ 0 0 $ 0 Standard Cost
Starts Inc. produces a product that require 3.50 standard hours per unit at a standard hourly rate of $17.00 per hour. Production of 7,500 units required 27,550 hours at an hourly rate of $16.00 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d) Perform the journal entries related to the variances.
A company reports the following information for its direct labor. Actual hours of direct labor used 64,000 Actual rate of direct labor per hour $ 15 Standard rate of direct labor per hour $ 13 Standard hours of direct labor for units produced 65,300 AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.
Stuart Company established a predetermined fixed overhead cost rate of $35 per unit of product. The company planned to make 6,500 units of product but actually produced only 6,000 units. Actual fixed overhead costs were $235,600. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variance U U
Oriole Company's actual results reveal that it was profitable in the sale of its star product: a high-end spot-cleaning vacuum for upholstery. But it was not nearly as profitable as management had hoped. Oriole's actual income statement and master budget income statement are as follows. In order to keep the focus on product costs, SG&A costs were omitted. Units sold Revenues Variable costs DM DL Variable-MOH Contribution margin Fixed-MOH Operating income DM DL Input Variable-MOH Actual Results Fixed-MOH 10,000 $1,670,000 560,500 216,000 Here are the company's standard cost cards for each product cost. 130,500 763,000 306,000 $457,000 Quantity Standards 3.0 yards 1.6 hours 1.6 hours. Flexible Budget 1.6 hours Price Standards $18.00 per yard $11.00 per hour $7.50 per hour $15.50 per hour Master Budget 12,000 $2,076,000 648,000 211,200 144,000 1,072,800 297,600 $775,200 Standard Cost per Unit $54.00 $17.60 $12.00 $24.80
Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $11.70 per hour. Production of 5,300 units required 10,810 hours at an hourly rate of $12.10 per hour. Enter favorable variances as negative numbers. (a) Determine the direct labor rate variance. (b) Determine the direct labor time variance. (c) Determine the cost variance.
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