Financial Accounting Mordica Company's standard labor cost per unit of outputis $19 (1.90 hours * $10 per hour). During August, thecompany incurs 1,957 hours of direct labor at an hourlycost of $10.10 per hour in making 1,000 units of thefinished product.Compute the total, price, and quantity labor variances.

Step 1: Define Standard costIt is an estimated cost that a company decides to produce goods and…

Answered: Mordica Company's standard labor cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
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Mordica Company's standard labor cost per unit of output is $19 (1.90 hours * $10 per hour). During August, the company incurs 1,957 hours of direct labor at an hourly cost of $10.10 per hour in making 1,000 units of the finished product. Compute the total, price, and quantity labor variances.