Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Variable overhead efficiency variance $ 45,360 U Direct labor efficiency variance 226,800 U Direct labor rate variance 21,870 U Misterio applies variable overhead using a standard rate of $2 per direct labor hour allowed. Three direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 35 percent more direct labor hours than should have been used. : What were the actual direct labor hours worked? What are the total hours allowed? What is the standard hourly rate for direct labor? What is the actual hourly rate? Round your answer to the nearest cent. 3. How many actual units were produced
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.
Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Variable
Misterio applies variable overhead using a standard rate of $2 per direct labor hour allowed. Three direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 35 percent more direct labor hours than should have been used.
:
- What were the actual direct labor hours worked?
What are the total hours allowed?
What is the standard hourly rate for direct labor?
What is the actual hourly rate? Round your answer to the nearest cent.
3. How many actual units were produced
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