The records of Norton, Inc. show the following for July. Standard labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor Direct labor efficiency variance Actual variable overhead Required: 1.8 33 60,000 110,000 $2,370,000 $ 40,000 U $3,402,000 Compute the direct labor and variable overhead price and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The records of Norton, Inc. show the following for July.
Standard labor-hours allowed per unit of output
Standard variable overhead rate per standard direct labor-hour
Good units produced
Actual direct labor-hours worked
Actual total direct labor
Direct labor efficiency variance
Actual variable overhead
Required:
1.8
33
60,000
110,000
$2,370,000
$
40,000 U
$3,402,000
Compute the direct labor and variable overhead price and efficiency variances. (Do not round intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
Direct labor:
Price variance
Efficiency variance
Variable overhead:
Price variance
Efficiency variance
Transcribed Image Text:The records of Norton, Inc. show the following for July. Standard labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor Direct labor efficiency variance Actual variable overhead Required: 1.8 33 60,000 110,000 $2,370,000 $ 40,000 U $3,402,000 Compute the direct labor and variable overhead price and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
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