### Budgeted vs. Actual Analysis| Item | Budgeted | Actual ||------------------------------|-----------------|-----------------|| Sales volume | 100 units | 110 units || Sales price | $50 per unit | $55 per unit || Unit VC | $30 per unit | $33 per unit || Input price for DL | $10 per hour | $12 per hour || Input quantity per unit for DL | 1.5 hours per unit | 2 hours per unit |**Task:** Compute the input efficiency variance for direct labor (DL).#### Options:- $100 unfavorable- $550 unfavorable- 0.5 hours unfavorable- $550 favorable- $100 favorableThis table compares budgeted figures versus actual figures for various financial metrics, including sales volume, sales price, unit variable cost (VC), direct labor (DL) input price, and DL input quantity per unit. The objective is to determine the variance in the efficiency of input concerning direct labor hours.To compute the input efficiency variance for DL, you need to first calculate the difference in the actual and budgeted hours, then multiply by the budgeted rate per hour. Consider which option reflects the calculated variance.

Input efficiency variance for DL measures the variance in standard hours allowed for actual output…

Sales volume Sales price Unit VC Input price for DL Input quantity per unit for DL Budgeted 100 units $50 per unit O $550 favorable $30 per unit O $100 unfavorable O $550 unfavorable O $100 favorable $10 per hour 1.5 hours per unit O 0.5 hours unfavorable Actual 110 units $55 per unit Compute input efficiency variance for DL $33 per unit $12 per hour 2 hours per unit

Sales volume Sales price Unit VC Input price for DL Input quantity per unit for DL Budgeted 100 units $50 per unit O $550 favorable $30 per unit O $100 unfavorable O $550 unfavorable O $100 favorable $10 per hour 1.5 hours per unit O 0.5 hours unfavorable Actual 110 units $55 per unit Compute input efficiency variance for DL $33 per unit $12 per hour 2 hours per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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