The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for July are shown in the following schedule. Standard Direct Labor Standard Direct Labor-Hours Allowed for Output 1,380 1,840 2,300 Worker classification Rate per Hour $60 II 55 III 45 The wage rates for each labor class increased under the terms of a new contract. The standard wage rates were not revised to reflect the new contract. The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of July were as follows. Actual Direct Labor Rate Worker classification Actual Direct Labor-Hours 1,470 1,950 2,380 per Hour $64 II III 58 46 Required: Calculate the dollar amount of the total direct labor variance for July for Matthews & Bros. and break down the total variance into the following components: a. Direct labor price and efficiency variances. b. Direct labor mix and yield variances.

The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for July are shown in the following schedule. Standard Direct Labor Standard Direct Labor-Hours Allowed for Output 1,380 1,840 2,300 Worker classification Rate per Hour $60 II 55 III 45 The wage rates for each labor class increased under the terms of a new contract. The standard wage rates were not revised to reflect the new contract. The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of July were as follows. Actual Direct Labor Rate Worker classification Actual Direct Labor-Hours 1,470 1,950 2,380 per Hour $64 II III 58 46 Required: Calculate the dollar amount of the total direct labor variance for July for Matthews & Bros. and break down the total variance into the following components: a. Direct labor price and efficiency variances. b. Direct labor mix and yield variances.

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 production department supervisor receives biweekly reports of the standard cost of theworkforce. The following is the most recent report: Total labor applied to production $91 650 Total wages paid $107 200 Unfavorable variation $ 15 550 Hours applied 9 300 Actual hours worked 11 750 Based on the experience of the past months, the supervisor has been asked to explain the reasons that originated the unfavorable variations obtained: a) Calculate the standard and actual rates for the period b) Determine the variation in labor rate c) Find the variation in labor efficiency.
Potts, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. Inthis company, time is recorded under the continental system, as shown on the time card on the following page.Sue Ellen Boggs is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800,between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late beforeany deduction is made for tardiness. Deductions are made to the nearest ¼ of an hour for workers who are morethan 10 minutes late in ringing in.Refer to the time card and compute:a. The daily total hours.......................................................................................................b. The total hours for the…
A company uses a predetermined overhead rate based on direc labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated its total manufacturing overhead cost at P400,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year is P350,000 and the actual direct labor hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be
At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end, the company’s records show that actual overhead costs for the year are $1,652,000. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released . $425,000 Movies still in production 50,000 Total actual direct labor cost . $475,000 1. Determine the predetermined overhead rate for the year. 2. Set up a T-account for overhead and enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate. 3. Determine whether overhead is overapplied or underapplied (and the amount) during the year. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
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The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for July are shown in the following schedule. Worker classification Standard Direct Labor Rate per Hour $60 Standard Direct Labor-Hours Allowed for Output 1,380 1,840 2,300 II 55 III 45 The wage rates for each labor class increased under the terms of a new contract. The standard wage rates were not revised to reflect the new contract. The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of July were as follows. Actual Direct Labor Rate Worker Classification Actual Direct per Hour $64 Labor-Hours 1,470 II 58 1,950 2,380 III 46 Required: Calculate the dollar amount of the total direct labor variance for July for Matthews & Bros. and break down the total variance into the following components: a. Direct labor price and efficiency variances. b. Direct labor mix and yield variances.
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