Standard Actual Direct materials Direct labor Overhead 6 lbs. @ $8 per lb. 2 hrs. @ $16 per hr. 2 hrs. @ $13 per hr. 42,400 lbs. @ $8.10 per lb. 13,700 hrs. @ $16.50 per hr. $188,000 7,000 Units manufactured mpute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for orable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) = Actual Hours = Standard Hours = Actual Rate = Standard Rate Actual Cost Standard Cost

Standard Actual Direct materials Direct labor Overhead 6 lbs. @ $8 per lb. 2 hrs. @ $16 per hr. 2 hrs. @ $13 per hr. 42,400 lbs. @ $8.10 per lb. 13,700 hrs. @ $16.50 per hr. $188,000 7,000 Units manufactured mpute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for orable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) = Actual Hours = Standard Hours = Actual Rate = Standard Rate Actual Cost Standard Cost

Name: StandardActual6 lbs. @ $8 per lb.2 hrs. @ $16 per hr.2 hrs. @ $13 per
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Description: StandardActual6 lbs. @ $8 per lb.2 hrs. @ $16 per hr.2 hrs. @ $13 per hr.42,400 lbs. @ $8.10 per lb.13,700 hrs. @ $16.50 per hr.$188,0007,000Direct materialsDirect laborOverheadUnits manufacturedCompute the direct labor rate variance and the direct

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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Print Item Direct Labor Variances The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs. at $22.50 Standard: 8,400 hrs. at $23.00 a. Determine the direct labor rate variance, direct labor 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. Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
Direct labor variances Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $22.00 per hour. 15,200 units used 65,200 hours at an hourly rate of $19.50 per hour. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance b. Direct labor time variance c. Direct labor cost variance
Direct Labor Variances The following data relate to labor cost for production of 3,600 cellular telephones: Actual: 2,420 hrs. at $14.10Standard: 2,380 hrs. at $14.40 a. Determine the direct labor rate variance, direct labor 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. Line Item Description Amount Variance Rate variance $fill in the blank 1 Time variance $fill in the blank 3 Total direct labor cost variance $fill in the blank 5
* 00 CH R E. Exercise 16-35 (Algo) Profit Variance Analysis (LO 16-4) Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 116,000 liters at a budgeted price of $195 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds @ $12) (0.5 hours @ $40) $24 Variable overhead is applied based on direct labor hours. The variable overhead rate is $100 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $50 per unit. All non-manufacturing costs are fixed and are budgeted at $2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $606,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue Less variable…
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials Direct labor Activity for September Materials purchased Material A Material B Materials used Material A Material B Direct labor used Production output 3 units of material A x $8.00 per unit 2 units of material B x $4.00 per unit 2 hours x $15.00 per hour 7,000 units x $7.80 per unit 4,800 units x $4.50 per unit Materials price variance $ Materials quantity variance 6,430 units 3,950 units 4,100 hours x $15.50 per hour 2,000 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A (b) Determine the labor rate and efficiency variances. Labor rate variance $ Labor efficiency variance $ ◆ → $ → Material B ◆ →
a.Compute for the actual cost paid per kilogram b.Compute for the Labor Efficiency Variance Present your answer as 1000 FAVORABLE OR 1000 UNFAVORABLE if applicable Topic: Standard Costing and Variance Analysis
The following data relate to direct labor costs for the current period: Standard 7,400 hours at $11.40 costs Actual costs 6,100 hours at $10.80 The direct labor rate variance is a. $18,480 unfavorable b. $3,660 favorable c. $18,480 favorable X d. $14,820 favorable
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials $ 65,560 Direct materials price variance $ 5,960 U Standard quantity of materials allowed per unit 3 pounds Standard price per pound of material $ 4.00 Standard rate per direct labor hour $ 5.00 Actual total direct labor hours 6,500 Direct labor efficiency variance $ 3,500 F Standard number of direct labor hours allowed per unit 2 hours Direct labor spending variance $ 400 U What is the actual number of units produced during the period?
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Variance Analysis for Decision Making Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw materials (1.5 grams at $16 per gram) ............................ $24.00 Direct labor (0.75 hours at $8 per hour).................................. $6.00 Variable overhead (0.75 hours at $3 per hour)........................ $2.25 Actual experience for current year: Units produced ........................................................................ 22,400 units Purchases of raw materials (21,000 grams at $17 per gram) .. $357,000 Raw materials used.................................................................. 33,400 grams Direct labor (16,750 hours at $8 per hour).............................. $134,000 Variable overhead cost incurred.............................................. $48,575 Required: Compute the following variances for raw…
Topic: Variance Analysis
4.2.1 Calculate the material quantity variance. 4.2.2 Calculate the variable manufacturing overhead efficiency variance. 4.2.3 Fixed manufacturing overhead volume variance.