Pretty & Beautiful Company has the following direct labor standard for its production. 6 standard hours per unit at $30.00 per hour Last month, employees actually worked 20,000 hours at a total labor cost of $400,000 to make 2,000 units. Calculate the labor efficiency variance.

Pretty & Beautiful Company has the following direct labor standard for its production. 6 standard hours per unit at $30.00 per hour Last month, employees actually worked 20,000 hours at a total labor cost of $400,000 to make 2,000 units. Calculate the labor efficiency variance.

Name: Pretty & Beautiful Company has the following direct labor standard for
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Pretty & Beautiful Company has the following direct labor standard for its production. 6 standard hours per unit at $30.00 per hour Last month, employees actually worked 20,000 hours at a total labor cost of $400,000 to make 2,000 units. Calculate th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Betty’s Bakery has the following standard cost sheet for one unit of its most popular cake: SQ SP Direct materials 1.2 pounds $1.50 per pound Direct labor 0.8 hours $12.00 per hour During the month of May, the company made 620 cakes and incurred the following actual costs: Direct materials purchased and used (920 pounds), $1,196 Direct labor (680 hours), $7,820 Calculate the direct materials price variance. Calculate the direct materials quantity variance. Calculate the direct materials spending variance. Calculate the direct labor rate variance. Calculate the direct labor efficiency variance. Calculate the direct labor spending variance.
The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.75 per hour Variable overhead 3 hours per unit at $2.09 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $7,900 The fixed factory overhead volume variance is
Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February: Production Machine-hours Variable overhead cost per machine-hour What is the variable overhead efficiency variance? $2,650 unfavorable O $2,675 favorable $2,650 favorable $2,675 unfavorable Actual 130,000 units 9,500 hours $5.35 Budgeted 130,000 units 9,000 hours $5.30
Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 3 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $126,000, and there was an unfavorable direct labor time variance of $5,152. A. What was the standard cost per hour? Round your answer to two decimal places. B.How many actual hours were worked? C.If the workers were paid $3.60 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number.
Shelley Company bought 3,000 pounds of materials for $2,850. They used 2,800 pounds to produce 1,000 units of output. Direct labor costs totaled $20,400 for 600 hours of work. Standards have been set as follows: Direct Materials: 2 pounds @ $1.10 per pound Direct Labor: .5 hours @ $32 per hour The materials purchase price variance is: $420 unfavorable O $420 favorable O $450 unfavorable O $450 favorable O $230 favorable
Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s standard labor cost of producing one unit of Product DD is 1.8 hours at a rate of $10.1 per hour. During August, 2,515 hours were incurred at a cost of $12.9 per hour to produce 1,087 units of Product DD. Bailey’s direct labor efficiency variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: -5,639.84U Correct Answer: 5,640 ± 1 (U)
Verde Company produces wheels for bicycles. During the year, 660,000 wheels were produced. The actual labor used was 368,000 hours at $9.20 per hour. Verde has the following labor standards: 1) $10.20 per hour; 2) 0.5 hour per wheel. REQUIRED 1. Compute the labor rate variance. 2. Compute the labor efficiency variance.
Company A produced 2,200 units of output during a production process that normally requires 2 hours of labor per unit of output. The standard labor rate is $16 per hour, but the company paid $15 per hour. Actual hours needed to complete the production process were 4,600. How much was the labor rate variance? A. $4,400 favorable. B. $4,400 unfavorable. C. $4,600 favorable. D. $4,600 unfavorable.
Orange Company produces computer tables. During the year, 250,000 computer tables were produced. Material and labour standards for producing computer table are as follows: Direct materials (6 pieces plywood @$8) $48 Direct labour (2 hours @ $14.50) $29.00 Orange Company actual labour hours were 400,000 hours at a wage rate of $15.00 per hour. What is Orange Company's total labour variance? 1) $1,250,000F 2) $2,300,000 U 3) $1,430,500F 4) $1,500,000U
2. Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520 (HINT - this is helpful to solve the problem). NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What was the standard rate per hour ?  standard rate per hour. (with "$" round answer to two decimal places with commas as needed) If the workers were paid $3.90 per hour, how many actual hours were worked ?  actual hours. (round answer to whole number with commas as needed) Complete the following table of variances and their conditions: Variance Variance Amount…
A company has the following information in its standard cost card:                                                                                                 £ Material 2.5kg at the price of £3/kg                                 = 7.00 During the month the company recorded the following: Units produced                 =          2,500 units Material used                    =          7,850kg Material cost                     =          £23,180 Calculate the material price variance. 2. Calculate the material usage variance. 3. Explain what is meant by the breakeven point, and its usefulness to a business.
Scotto Designs has the following standards for the production of scarves:                              Standard Quantity  Standard Price Direct materials    1.2 yards per scarf      $4.60 per yard Direct labor         0.15 hours per scarf   $11.00 per hour The company used 985 yards of material in order to make 800 scarves in April. The company purchased 1,100 yards at $4.70 per yard. How much is the direct materials quantity variance?             $110 favorable $117.50 unfavorable $8 unfavorable $705 unfavorable $115 unfavorable