Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company's cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials .... Quantity allowed per unit Direct labor rate... Hours allowed per unit ... Fixed overhead budgeted . Normal level of production Variable overhead application rate .. Fixed overhead application rate ($12,000 _ 1,200 units). . . 10.00 per unit Total overhead application rate. . . $5 per pound .100 pounds per unit . $20.00 per hour . 2 hours per unit $12,000 per month 1,200 units $ 2.00 per unit $12.00 per unit Actual Cost Information Cost of materials purchased and used.... Pounds of materials purchased and used . Cost of direct labor ... Hours of direct labor .. Cost of variable overhead . . Cost of fixed overhead . Volume of production . *e $468,000 .104,000 pounds $46,480 2,240 hours arre$2,352 $12,850 ..1,000 units Instructions 1. Compute the labor rate variance, given an actual labor rate of $20.75 per hour ($46,480 + 2,240 hours). 2. Compute the labor efficiency variance.

Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company's cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials .... Quantity allowed per unit Direct labor rate... Hours allowed per unit ... Fixed overhead budgeted . Normal level of production Variable overhead application rate .. Fixed overhead application rate ($12,000 _ 1,200 units). . . 10.00 per unit Total overhead application rate. . . $5 per pound .100 pounds per unit . $20.00 per hour . 2 hours per unit $12,000 per month 1,200 units $ 2.00 per unit $12.00 per unit Actual Cost Information Cost of materials purchased and used.... Pounds of materials purchased and used . Cost of direct labor ... Hours of direct labor .. Cost of variable overhead . . Cost of fixed overhead . Volume of production . *e $468,000 .104,000 pounds $46,480 2,240 hours arre$2,352 $12,850 ..1,000 units Instructions 1. Compute the labor rate variance, given an actual labor rate of $20.75 per hour ($46,480 + 2,240 hours). 2. Compute the labor efficiency variance.

Name: I.Krueger Corporation in Washington, D.C., U.S., recently implemented
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Description: I.Krueger Corporation in Washington, D.C., U.S., recently implemented a standardcost system. The company's cost accountant has gathered the following informationneeded to perform a variance analysis at the end of the month:Standard Cost InformationD

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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