20TB MC Qu. 10-71 Thomas Enterprises...Thomas Enterprises purchased 58,300 pounds (cost = $378,950) of direct material to be used in the manufacture ofthe company's sole product. According to the production specifications, each completed unit requires five pounds ofdirect material at a standard cost of $6.80 per pound. Direct materials consumed by the end of the period totaled55,800 pounds in the manufacture of 11,400 finished units.5DintsеВookAn examination of Thomas' payroll records revealed that the company worked 23,100 labor hours (cost = $272,580)during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of$12.40 per hour. Use the information to compute the following variances.PrintReferencesThomas' direct-labor rate variance was:Multiple Choice$13,860 F.< Prev20 of 24Next > Check my$13,860 F.$13,860 U.$3,720 F.$3,720 U.None of the answers is correct.

Name: 20TB MC Qu. 10-71 Thomas Enterprises...Thomas Enterprises purchased 5
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 20TB MC Qu. 10-71 Thomas Enterprises...Thomas Enterprises purchased 58,300 pounds (cost = $378,950) of direct material to be used in the manufacture ofthe company's sole product. According to the production specifications, each completed unit requir

Direct Labor rate Variance is the Variance for the difference between Actual rate and Standard Rate…

Answered: Thomas' direct-labor rate variance was:

Business

Accounting

Thomas' direct-labor rate variance was:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How is the fixed overhead volume variance different from the other variances?
The rate variance and total direct labor cost variance were not correct, please re do those calculations.
How to calculate direct labor time variance
Which of the following is true of direct labor variances? a. The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. b. The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. c. The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. d. The labor rate and labor efficiency variances will always add up to the total labor variance. e. The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.
The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate. O True O False
1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
The labor efficiency variance is the difference between the actual quantity of hours at the standard rate and the standard direct labor hours at the standard rate. A. True B. False
Required: present the gross profit variance
1. Calculate the total direct materials variance and total direct labour variance, together with their respective sub-variances. 2. Show how he derived the percentages quoted in his statement
in preparing variance analysis for both variable overhead and fixed overhead costs, both include spending variances