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Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. January February March April May June July August September October November December SCHIFFER CORPORATION Direct-Labor Variance Report Direct-Labor Rate. Variance Amount $ 800 F 4,900 F 100 U 2,000 U 3,800 F 3,900 F 4,200 F 5,100 F 4,800 F 5,700 F 4,200 F 4,300 F Standard Cost, % 0.16% 0.98% 0.02% 0.40% 0.76% 0.78% 0.84% 1.02% 0.96% 1.14% Direct-Labor Efficiency Variance Standard Cost, % Amount $5,000 U 7,500 U 9,700 U 12,800 U 20,100 U 17,000 U 28,500 U 38,000 U 37,000 U 42,000 U 0.84% 60,000 U 0.86% 52,000 U 1.00% 1.50% 1.94% 2.56% 4.02% 3.40% 5.70% 7.60% 7.40% 8.40% 12.00% 10.40% Schiffer's controller uses the following rule of thumb: Investigate all variances equal to or greater than $30,000, which is 6 percent of standard cost.

Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. January February March April May June July August September October November December SCHIFFER CORPORATION Direct-Labor Variance Report Direct-Labor Rate. Variance Amount $ 800 F 4,900 F 100 U 2,000 U 3,800 F 3,900 F 4,200 F 5,100 F 4,800 F 5,700 F 4,200 F 4,300 F Standard Cost, % 0.16% 0.98% 0.02% 0.40% 0.76% 0.78% 0.84% 1.02% 0.96% 1.14% Direct-Labor Efficiency Variance Standard Cost, % Amount $5,000 U 7,500 U 9,700 U 12,800 U 20,100 U 17,000 U 28,500 U 38,000 U 37,000 U 42,000 U 0.84% 60,000 U 0.86% 52,000 U 1.00% 1.50% 1.94% 2.56% 4.02% 3.40% 5.70% 7.60% 7.40% 8.40% 12.00% 10.40% Schiffer's controller uses the following rule of thumb: Investigate all variances equal to or greater than $30,000, which is 6 percent of standard cost.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Which variances would have been investigated during the year? (Indicate month and type of variance.)

**Variance Investigation Table** **Instructions**: Identify which variances would have been investigated during the year by indicating the month and type of variance. - **Note**: Specify the effect of each variance by selecting "Favorable" or "Unfavorable." If there is no effect (i.e., zero variance), select "None" and enter "0." - Round "Percentage of Standard Cost" to two decimal places. **Table Columns**: 1. **Variance Type**: Specify the type of variance. 2. **Month**: Indicate the month the variance occurred. 3. **Amount**: Enter the amount of the variance. 4. **Percentage of Standard Cost**: Calculate the variance as a percentage of the standard cost and round to two decimal places.
Transcribed Image Text:**Variance Investigation Table** **Instructions**: Identify which variances would have been investigated during the year by indicating the month and type of variance. - **Note**: Specify the effect of each variance by selecting "Favorable" or "Unfavorable." If there is no effect (i.e., zero variance), select "None" and enter "0." - Round "Percentage of Standard Cost" to two decimal places. **Table Columns**: 1. **Variance Type**: Specify the type of variance. 2. **Month**: Indicate the month the variance occurred. 3. **Amount**: Enter the amount of the variance. 4. **Percentage of Standard Cost**: Calculate the variance as a percentage of the standard cost and round to two decimal places.
Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. ### SCHIFFER CORPORATION #### Direct-Labor Variance Report ##### Direct-Labor Rate Variance | Direct-Labor Efficiency Variance | Month | Standard Amount | Cost, % | Amount | Standard Cost, % | |------------|-----------------|---------|---------|------------------| | January | $800 F | 0.16% F | $5,000 U| 1.00% U | | February | $4,900 F | 0.98% F | $7,500 U| 1.50% U | | March | $100 U | 0.02% U | $9,700 U| 1.94% U | | April | $2,000 U | 0.40% U | $12,800 U| 2.56% U | | May | $3,800 F | 0.76% F | $20,100 U| 4.02% U | | June | $3,900 F | 0.78% F | $17,000 U| 3.40% U | | July | $4,200 F | 0.84% F | $28,500 U| 5.70% U | | August | $5,100 F | 1.02% F | $38,000 U| 7.60% U | | September | $4,800 F | 0.96% F | $37,000 U| 7.40% U | | October | $5,700 F | 1.14% F | $42,000 U| 8.40% U | | November | $4,200 F | 0.84% F | $60,000 U| 12.00% U | | December | $4,300 F | 0.86% F | $52,000 U| 10.40% U | **Key:** - "F" = Favorable - "U" = Unfavorable Schiffer’s controller uses the following
Transcribed Image Text:Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. ### SCHIFFER CORPORATION #### Direct-Labor Variance Report ##### Direct-Labor Rate Variance | Direct-Labor Efficiency Variance | Month | Standard Amount | Cost, % | Amount | Standard Cost, % | |------------|-----------------|---------|---------|------------------| | January | $800 F | 0.16% F | $5,000 U| 1.00% U | | February | $4,900 F | 0.98% F | $7,500 U| 1.50% U | | March | $100 U | 0.02% U | $9,700 U| 1.94% U | | April | $2,000 U | 0.40% U | $12,800 U| 2.56% U | | May | $3,800 F | 0.76% F | $20,100 U| 4.02% U | | June | $3,900 F | 0.78% F | $17,000 U| 3.40% U | | July | $4,200 F | 0.84% F | $28,500 U| 5.70% U | | August | $5,100 F | 1.02% F | $38,000 U| 7.60% U | | September | $4,800 F | 0.96% F | $37,000 U| 7.40% U | | October | $5,700 F | 1.14% F | $42,000 U| 8.40% U | | November | $4,200 F | 0.84% F | $60,000 U| 12.00% U | | December | $4,300 F | 0.86% F | $52,000 U| 10.40% U | **Key:** - "F" = Favorable - "U" = Unfavorable Schiffer’s controller uses the following
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