The following information pertains to UV company. The direct labor standards for a product are 5 hours of direct labor at $14.00 per direct labor- hour- $70. During April, 3,650 units of this product were made, and the budgeted units were 3,900. The labor cost incurred was $169,786 and 14,150 direct labor-hours were worked. The direct labor variances for the month were: Labor rate variance Labor efficiency variance $57,400 F $57,400 U $57,400 F а. $28,314 F b. $28,314 F с. $28,314 U d. $28,314 U $57,400 U

The following information pertains to UV company. The direct labor standards for a product are 5 hours of direct labor at $14.00 per direct labor- hour- $70. During April, 3,650 units of this product were made, and the budgeted units were 3,900. The labor cost incurred was $169,786 and 14,150 direct labor-hours were worked. The direct labor variances for the month were: Labor rate variance Labor efficiency variance $57,400 F $57,400 U $57,400 F а. $28,314 F b. $28,314 F с. $28,314 U d. $28,314 U $57,400 U

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Description: The following information pertains to UV company.The direct labor standards for a product are 5 hours of direct labor at $14.00 per direct labor-hour- $70. During April, 3,650 units of this product were made, and the budgeted units were3,900.The lab

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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The following information pertains to UV company.
The direct labor standards for a product are 5 hours of direct labor at $14.00 per direct labor-
hour- $70. During April, 3,650 units of this product were made, and the budgeted units were
3,900.
The labor cost incurred was $169,786 and 14,150 direct labor-hours were worked. The direct
labor variances for the month were:
Labor rate variance
Labor efficiency variance
$57,400 F
$28,314 F
$28,314 F
$28,314 U
а.
b.
$57,400 U
с.
$57,400 F
d.
$28,314 U
$57,400 U

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