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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 $ 511, 150 Actual direct labor-hours worked i 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 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 15,300 14,600 $47,300 F $ 349,300 $21

Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost $ 511, 150 Actual direct labor-hours worked i 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 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 15,300 14,600 $47,300 F $ 349,300 $21

FINANCIAL ACCOUNTING
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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Exercise 16-42 (Algo) Variable Cost Variances (LO 16-5) 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 i 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 Direct labor Price variance Efficiency variance 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. Variable overhead: $ 511,150 Price variance Efficiency variance 15,300 14,600 $47,300 F $ 349,300 $ 21
Transcribed Image Text:Exercise 16-42 (Algo) Variable Cost Variances (LO 16-5) 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 i 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 Direct labor Price variance Efficiency variance 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. Variable overhead: $ 511,150 Price variance Efficiency variance 15,300 14,600 $47,300 F $ 349,300 $ 21
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