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 e $7 per pound 2 DLH e $17 per DLH 2 DLH @ $11 per DLH Actual Results Direct materials 44,300 pounds @ $7.20 per pound 14,300 hours e $17.40 per hour $ 165,800 7,300 units Direct labor Overhead Units manufactured Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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 @ $7 per pound
2 DLH @ $17 per DLH
2 DLH @ $11 per DLH
Actual Results
Direct materials
Direct labor
44,300 pounds @ $7.20 per pound
14,300 hours @ $17.40 per hour
$ 165,800
7,300 units
Overhead
Units manufactured
Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting
favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.)
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
Actual Cost
Standard Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb034729f-db63-4235-9b33-79c3c77be50a%2F4e096aab-ded0-4b4f-aeb7-c5811e3b1d67%2F6tmomk8_processed.png&w=3840&q=75)
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