Sheffield Family Instruments makes cellos. During the past year, the company made 6,440 cellos even though the budget planned for only 5,550. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate. The production manager budgets 4 direct labor hours per cello. During the year, a total of 24,650 direct labor hours were worked. (a) Calculate the direct labor rate and efficiency variances. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct labor rate variance Direct labor efficiency variance eTextbook and Media $ $

Sheffield Family Instruments makes cellos. During the past year, the company made 6,440 cellos even though the budget planned for only 5,550. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate. The production manager budgets 4 direct labor hours per cello. During the year, a total of 24,650 direct labor hours were worked. (a) Calculate the direct labor rate and efficiency variances. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct labor rate variance Direct labor efficiency variance eTextbook and Media $ $

Name: Sheffield Family Instruments makes cellos. During the past year, the
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Description: Sheffield Family Instruments makes cellos. During the past year, the company made 6.440 cellos even though the budget planned foronly 5,550. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate

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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Sheffield Family Instruments makes cellos. During the past year, the company made 6.440 cellos even though the budget planned for
only 5,550. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate. The
production manager budgets 4 direct labor hours per cello. During the year, a total of 24,650 direct labor hours were worked.
(a) Calculate the direct labor rate and efficiency variances. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Direct labor rate variance
Direct labor efficiency variance
eTextbook and Media
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