! 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 Actual Cost Standard Quantity and Cost 7 pounds $7 per pound 2 DLH $17 per DLH 2 DLH $12 per DLH $ 0 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.) $ 0 0 58,500 pounds 16,300 hours $ 205,500 Actual Results 8,300 units $ $7.20 per pound $17.50 per hour 0 Standard Cost
! 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 Actual Cost Standard Quantity and Cost 7 pounds $7 per pound 2 DLH $17 per DLH 2 DLH $12 per DLH $ 0 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.) $ 0 0 58,500 pounds 16,300 hours $ 205,500 Actual Results 8,300 units $ $7.20 per pound $17.50 per hour 0 Standard Cost
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.
Direct materials
Direct labor
Overhead
Units manufactured
AH Actual Hours
SH Standard Hours
AR Actual Rate
SR Standard Rate
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.)
Actual Cost
Standard Quantity and Cost
7 pounds $7 per pound
2 DLH $17 per DLH
2 DLH $12 per DLH
$
0
$
Actual Results
58,500 pounds $7.20 per pound
16,300 hours $17.50 per hour
$ 205,500
8,300 units
0
0
$
0
Standard Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc860f7d-8144-482b-af65-d08d28366106%2F2ab90aef-3bf1-4fc2-a249-3dd0c44ee844%2Ff6ptb9j_processed.jpeg&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.
Direct materials
Direct labor
Overhead
Units manufactured
AH Actual Hours
SH Standard Hours
AR Actual Rate
SR Standard Rate
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.)
Actual Cost
Standard Quantity and Cost
7 pounds $7 per pound
2 DLH $17 per DLH
2 DLH $12 per DLH
$
0
$
Actual Results
58,500 pounds $7.20 per pound
16,300 hours $17.50 per hour
$ 205,500
8,300 units
0
0
$
0
Standard Cost
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