Saved Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.60 per hour. During August, Delmar Inc. paid its workers $145,640 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "Nones ffect (i.e., zero variance).)

Saved Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.60 per hour. During August, Delmar Inc. paid its workers $145,640 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "Nones ffect (i.e., zero variance).)

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Description: Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.60 per hour. During August, Delmar Inc. paidits workers $145,640 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August.Saveda. Calculate the direct

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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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Question

Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.60 per hour. During August, Delmar Inc. paid
its workers $145,640 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August.
Saved
a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting
"Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)
Rate Variance
b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None"
for no effect (i.e., zero variance).)
Efficiency Variance
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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
Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period. Direct labor standard (4.00 hrs. @ $7.00/hr.) $ 28.00 per unit Actual hours worked 12,650 Actual rate per hour $ 7.40 Multiple Choice $5,600 favorable. $4,390 unfavorable. $5,600 unfavorable. $4,390 favorable. $12,650 favorable.
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Please help me to calculate direct labor rate variance.....??
Nisqually Corporation has established the following labor standards for a particular product: Standard labor-hours per unit of output 8.3 hours Standard labor rate $12.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours A Actual total labor cost $71,370 Actual output 900 units What is the labor efficiency variance for the month? Your instructor has provided the following variance formulas for you: Direct Labor Variances AH(AR - SR) SR(AH - SH) Labor Rate Variance: Labor Efficiency Variance:
Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $15.10 per hour. During August, Delmar Incorporated paid its workers $260,832 for 17,160 hours. Delmar Incorporated produced 8,780 widgets during August. Required: Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor efficiency variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).
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)
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