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.

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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…

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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

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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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Question

20
TB MC Qu. 10-71 Thomas Enterprises...
Thomas Enterprises purchased 58,300 pounds (cost = $378,950) of direct material to be used in the manufacture of
the company's sole product. According to the production specifications, each completed unit requires five pounds of
direct material at a standard cost of $6.80 per pound. Direct materials consumed by the end of the period totaled
55,800 pounds in the manufacture of 11,400 finished units.
5
Dints
еВook
An 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.
Print
References
Thomas' direct-labor rate variance was:
Multiple Choice
$13,860 F.
< Prev
20 of 24
Next >

Check my
$13,860 F.
$13,860 U.
$3,720 F.
$3,720 U.
None of the answers is correct.

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