Required Information [The following information applies to the questions displayed below.] A manufactured product has the following Information for June. Direct materials Direct labor Overhead Units manufactured AH - Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate AH Compute the (1) direct labor rate variance and (2) direct labor efficiency varlance. (Indicate the effect of each varlance by selectin favorable, unfavorable, or no varlance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost x X AR Standard Quantity and Cost 6 pounds @ $8 per pound 2 DLH @ $16 per DLH 2 DLH@ $12 per DLH $ 0 $ AH 0 0 x x Actual Results 48,500 pounds @ $8.10 per pound 15,700 hours @ $16.50 per hour $ 198,000 8,000 units SR $ SH Standard Cost x X SR
Required Information [The following information applies to the questions displayed below.] A manufactured product has the following Information for June. Direct materials Direct labor Overhead Units manufactured AH - Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate AH Compute the (1) direct labor rate variance and (2) direct labor efficiency varlance. (Indicate the effect of each varlance by selectin favorable, unfavorable, or no varlance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost x X AR Standard Quantity and Cost 6 pounds @ $8 per pound 2 DLH @ $16 per DLH 2 DLH@ $12 per DLH $ 0 $ AH 0 0 x x Actual Results 48,500 pounds @ $8.10 per pound 15,700 hours @ $16.50 per hour $ 198,000 8,000 units SR $ SH Standard Cost x X SR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Required Information
[The following information applies to the questions displayed below.]
A manufactured product has the following information for June.
Standard Quantity and Cost
6 pounds @ $8 per pound
2 DLH @ $16 per DLH
2 DLH @ $12 per DLH
Direct materials
Direct labor
Overhead
Units manufactured
AH
Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each varlance by selectin
favorable, unfavorable, or no varlance. Round "Rate per hour" answers to 2 decimal places.)
AH = Actual Hours
SH - Standard Hours
AR = Actual Rate
SR = Standard Rate
Actual Cost
X
X
AR
$
0
$
AH
0
0
X
X
Actual Results
48,500 pounds @ $8.10 per pound
15,700 hours @ $16.50 per hour
$ 198,000
8,000 units
SR
$
0
SH
Standard Cost
X
X
SR](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2edba1ae-cd07-4963-9dc8-2a6a9d4ff547%2F05679b1c-80ff-4108-871e-3ba6fcff1ea7%2Fncnw7zo_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
A manufactured product has the following information for June.
Standard Quantity and Cost
6 pounds @ $8 per pound
2 DLH @ $16 per DLH
2 DLH @ $12 per DLH
Direct materials
Direct labor
Overhead
Units manufactured
AH
Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each varlance by selectin
favorable, unfavorable, or no varlance. Round "Rate per hour" answers to 2 decimal places.)
AH = Actual Hours
SH - Standard Hours
AR = Actual Rate
SR = Standard Rate
Actual Cost
X
X
AR
$
0
$
AH
0
0
X
X
Actual Results
48,500 pounds @ $8.10 per pound
15,700 hours @ $16.50 per hour
$ 198,000
8,000 units
SR
$
0
SH
Standard Cost
X
X
SR
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