Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 63,000 Standard direct labor hours allowed (SQ) 70,000 Total payroll for direct labor $630,000 Direct labor efficiency variance $ 61,600

Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 63,000 Standard direct labor hours allowed (SQ) 70,000 Total payroll for direct labor $630,000 Direct labor efficiency variance $ 61,600

Name: Lucky Company's direct labor information for the month of February is
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Description: Lucky Company's direct labor information for the month of February is as follows:Actual direct labor hours worked (AQ) 63,000Standard direct labor hours allowed (SQ) 70,000Total payroll for direct labor$ 630,000Direct labor efficiency variance$ 61,6

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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Concept explainers

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.

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Question

Lucky Company's direct labor information for the month of February is as follows:
Actual direct labor hours worked (AQ) 63,000
Standard direct labor hours allowed (SQ) 70,000
Total payroll for direct labor
$ 630,000
Direct labor efficiency variance
$ 61,600
The total standard direct labor cost allowed for February was:
Multiple Choice
$658,000.
$616,000.

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