Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 3.3 hours of labor at a cost of $39 per hour. The firm actually completed 650 Class 2 returns. Actual labor hours averaged 2.9 hours per return and actual labor cost amounted to $49 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance). a. Total labor variance b. Total labor price variance c. Total labor usage variance

Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 3.3 hours of labor at a cost of $39 per hour. The firm actually completed 650 Class 2 returns. Actual labor hours averaged 2.9 hours per return and actual labor cost amounted to $49 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance). a. Total labor variance b. Total labor price variance c. Total labor usage variance

Name: **Transcription for Educational Website:**---**Labor Cost Variance An
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Transcription for Educational Website:**---**Labor Cost Variance Analysis for CPA Firm**Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please refer to the picture below for information. Kindly show the complete solution. Thank you so much. Please answer all my questions I badly need it. ? Compute for the following: 1. Actual labor rate per hour 2. Actual labor hours utilized 3. Labor rate variance
The following data relate to direct labor costs for the current period: Standard costs 7,300 hours at $11.30 Actual costs 6,200 hours at $10.40 What is the direct labor rate variance? a.$18,010 unfavorable b.$5,580 favorable c.$18,010 favorable d.$12,430 favorable The Flapjack Corporation had 7,768 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 965 units were actually produced. Labor standards were 8.0 hours per completed unit at a standard rate of $13.20 per hour. The labor rate variance is $6,214.40 unfavorable $6,214.40 favorable $1,003.00 unfavorable $1,003.00 favorable
Upon your review of Shalom Company's standard cost card. You found the following information: Standards: Material Labor Actual: Production Material Labor 5.0 feet per unit @ P4.00 per foot 3.0 hours per unit @ 35.00 per hour 2,800 units produced during the month 14,500 feet used; 15,100 feet purchased @ P3.70 per foot 8,150 direct labor hours @ P36.00 per hour Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the material price variance?
Need Answer please
La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used 710 hrs. Actual rate for direct labor $11.70 per hr. Bicycles completed in July 330 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $11.90 per hr. a. Determine the direct labor rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct labor rate variance $fill in the blank 1 Direct labor time variance fill in the blank 3 Total direct labor cost variance $fill in the blank 5 b. How much direct labor should be debited to Work in Process?$fill in the blank 7
Schematize pertormance analysis and comment on variances. Following is the data of a manufacturing concern. From the figures given below, calculate: () Materials Cost Variance (W) Material Price Varlance (H) Material Usage Variance Product X During a particular period 160 tons of output was undertaken. The standard price per unit of materials is $20. The materials required for actual production were 4,000 units. An amount of $16,000 was spent on purchasing the materlals. The standard quantity of materials requlred for producing one fon of output is 120 units. Product Y The standard quantity of materlals required for producing one ton of output is 240 unils. The standard price per unit of materials is $24. During a porticular period d40 fons of production were 24.000 units. An amount of $48.000 was spent on purchasing the materials output was undertaken. The materials required for octual
Can you show me how this is done? Bailey’s standard labor cost of producing one unit of Product DD is 1.7 hours at a rate of $12.9 per hour. During August, 1,462 hours were incurred at a cost of $11.8 per hour to produce 1,257 units of Product DD. Bailey’s direct labor rate variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: 8.24 Correct Answer: 1,608 ± 1 (F)
For direct labor:a. Compute the actual direct labor cost per hour for the month.b. Compute the labor rate variance. Julia Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.75 per machine-hour and Budgeted Fixed Manufacturing Costs are $300,000 per year. The denominator level of activity is 150,000 machine-hours, or 150,000 units. Actual data for the year were as follows: Actual variable overhead cost $ 211,680 Actual fixed manufacturing overhead cost $ 315,000 Actual machine-hours 126,000 Units produced 120,000 Required: What are the predetermined variable and fixed manufacturing overhead rates for the year? Compute the variable overhead rate and efficiency variances for the year. Compute the fixed…
.
Please don't give image based answer..thanku
Compute for spending variance.
Give answer for the question