The following information is gathered from the labor records ofBinamul & Co. Payroll allocation for direct labor is Rs. 1, 31,600Time card analysis shows that 9, 400 hours were worked onproductions lines. Production reports for the period showed that4,500 units have been completed, each having standard labor timeof 2 hours and a standard labor rate of Rs. 15 per hour. Calculate thelabor variances.

The objective of the question is to calculate the labor variances, which include labor rate variance…

Answered: The following information is gathered…

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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The details regarding Labour force engaged in a work scheduled to be completed in 30 hours are as follows:- The work is actually completed in 32 hours. Calculate Labour Variances. Show your working clearly.
Domestic
Bailey’s standard labor cost of producing one unit of Product DD is 1.8 hours at a rate of $12.4 per hour. During August, 1,436 hours were incurred at a cost of $11.1 per hour to produce 1,134 units of Product DD. Bailey’s direct labor rate variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: 9,371.28F Correct Answer: 1,867 ± 1 (F)
In October, Pine Company reports 19,400 actual direct labor hours, and it incurs $122,380 of manufacturing overhead costs Standard hours allowed for the work done is 21,100 hours. The predetermined overhead rate is $5.75 per direct labor hour. Compute the total overhead variance Total Overhead Variance
Information for Bonanza Company's direct labor cost for February is as follows: Actual direct labor - hours 89, 000 Total direct labor payroll $ 578, 500 Efficiency variance5, 880 F Rate variance $ 142, 400 U What were the standard direct labor hours for february?
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.6 hours Standard labor rate $ 15.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,500 hours Actual total labor cost $ 129,200 Actual output 840 units What is the labor rate variance for the month?
The following labor standards have been established for a particular product: Standard labor hours per unit of output 8.7 hours Standard labor rate $18.10 per hour The following data pertain to operations concerning the product for November: Actual hours worked 3,800 hours Actual total labor cost $67,640 Actual output 500 units What is the direct labor rate variance for November?
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $12.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $78,650 Actual output 900 units What is the labor efficiency variance for the month? Multinl e CholcA
The standard direct labor cost per unit for a company was $21 (= $14 per hour × 1.5 hours per unit). During the period, actual direct labor costs amounted to $136,500, 9,600 labor-hours were worked, and 5,600 units were produced. Required: Compute the direct labor price and efficiency variances for the period.
The standard cost of product 5252 includes 1.9 hours of direct labor at $12.00 per hour. The predetermined overhead rate is $22 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $12.30 per hour and $80,700 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor. Total labor variance 3160 Unfavorable Labor price variance 800 Unfavorable Labor quantity variance $ 2360 Unfavorable (b) Compute the total overhead variance. Total overhead variance $ 7300 Favorable
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.9 hours Standard labor rate $ 13.70 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,700 hours Actual total labor cost $ 102,410 Actual output 1,000 units What is the labor efficiency variance for the month?
Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.30 per hour. During October, the company actually uses 13,200 hours of direct labor at a $217,800 total cost to produce 6,900 units. In November, the company uses 17,200 hours of direct labor at a $284,660 total cost to produce 7,300 units of product.AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months.(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

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