Required a. Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls? b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours. c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U). d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls? Labor variances should be based on the < Req A Req B >
Required a. Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls? b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours. c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U). d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls? Labor variances should be based on the < Req A Req B >
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
![**Franklin’s Doll Company**
Franklin’s Doll Company produces handmade dolls. The standard amount of time spent on each doll is 1.50 hours. The standard cost of labor is $7.77 per hour. The company planned to make 7,400 dolls during the year but actually used 11,400 hours of labor to make 8,700 dolls. The payroll amounted to $91,884.
**Required**
a. Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls?
b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours.
c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U).
d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U).
---
**Instructions**
Complete this question by entering your answers in the tabs below.
- **Req A:** Answer whether labor variances should be based on the planned or actual volume.
- **Req B:** Prepare the required table with labor prices and hours.
- **Req C and D:** Calculate the labor variances and indicate favorability.
---
**Section: Req A**
Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls?
- Labor variances should be based on the [planned/actual] volume.
[Tabs to navigate between requirements are included for structured completion of the task.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92128449-3e3d-4269-9b7c-431f4cd6bd0c%2F55a59081-ff7f-40fb-ba6a-750f05fdc2e8%2F28ca5h7_processed.png&w=3840&q=75)
Transcribed Image Text:**Franklin’s Doll Company**
Franklin’s Doll Company produces handmade dolls. The standard amount of time spent on each doll is 1.50 hours. The standard cost of labor is $7.77 per hour. The company planned to make 7,400 dolls during the year but actually used 11,400 hours of labor to make 8,700 dolls. The payroll amounted to $91,884.
**Required**
a. Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls?
b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours.
c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U).
d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U).
---
**Instructions**
Complete this question by entering your answers in the tabs below.
- **Req A:** Answer whether labor variances should be based on the planned or actual volume.
- **Req B:** Prepare the required table with labor prices and hours.
- **Req C and D:** Calculate the labor variances and indicate favorability.
---
**Section: Req A**
Should labor variances be based on the planned volume of 7,400 dolls or the actual volume of 8,700 dolls?
- Labor variances should be based on the [planned/actual] volume.
[Tabs to navigate between requirements are included for structured completion of the task.]
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