Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $13.40 Standard: 3,690 hrs. at $13.70 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 Favorable v Time variance Unfavorable v Total direct labor cost variance $4 Favorable v

The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $13.40 Standard: 3,690 hrs. at $13.70 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 Favorable v Time variance Unfavorable v Total direct labor cost variance $4 Favorable v

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Performance Eval Variances: Refer to the picture. Thank you!

Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $13.40 Standard: 3,690 hrs. at $13.70 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance 2$ Favorable Time variance $ Unfavorable Total direct labor cost variance $ Favorable
Transcribed Image Text:Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $13.40 Standard: 3,690 hrs. at $13.70 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance 2$ Favorable Time variance $ Unfavorable Total direct labor cost variance $ Favorable
Expert Solution

Direct labor rate variance = Actual hours x (Actual rate - Standard rate)

Direct labor time variance = Standard rate x (Actual hours - Standard hours)

Total direct labor cost variance = Direct labor rate variance + Direct labor time variance

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS