Records at the Far Actual total direct labor cost Actual direct labor-hours worked Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead. Standard variable overhead rate per standard direct labor-hour. $ 506,800 15,280 14,560 $47,100 F $ 349,100- $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Records at the Farnsworth Corporation contained the following data for the most recent period of activity:
Actual total direct labor cost
Actual direct labor-hours worked
$ 506,800
15,280
Standard direct labor-hours allowed for actual output (flexible budget)
Direct labor price variance
Actual variable overhead
Standard variable overhead rate per standard direct labor-hour
14,560
$47,100 F
$ 349,100-
$ 21
Variable overhead is applied based on standard direct labor-hours allowed.
Required:
Compute the labor and variable overhead price and efficiency variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
Direct labor:
Price variance
Efficiency variance
Variable overhead:
Price variance
Efficiency variance
Transcribed Image Text:Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked $ 506,800 15,280 Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour 14,560 $47,100 F $ 349,100- $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
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