Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)

A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
PLEASE ANSWER ALL WITH SOLUTIONS TY
A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)
Transcribed Image Text:A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Industry Specific Activities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS