Total Direct Labor Cost The standards for production are: $39,695 Standards Direct Materials per gadget 3 lbs per gadget Cost of Direct Materials per pound Direct Labor per gadget Direct Labor Cost per gadget $5 per pound 18 minutes per gadget (.30 hours) $6 per gadget What is the Direct Labor Rate Variance? Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Total Direct Labor Cost The standards for production are: $39,695 Standards Direct Materials per gadget 3 lbs per gadget Cost of Direct Materials per pound Direct Labor per gadget Direct Labor Cost per gadget $5 per pound 18 minutes per gadget (.30 hours) $6 per gadget What is the Direct Labor Rate Variance? Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
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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Transcribed Image Text:D
Question 2
Altanta Industries manufactures gadgets. In the month of March, the company
incurred the following:
Gadgets produced
Direct Materials
purchased
Direct Materials
used
Cost of Direct
Materials purchased
Direct Labor Hours
Total Direct Labor
Cost
Actual
10,402
20,000
pounds
19,000
pounds
$40.000
2,246
hours
$39.695
The standards for production are:
Transcribed Image Text:Total Direct Labor
Cost
The standards for production are:
$39,695
Standards
Direct Materials per gadget 3 lbs per gadget
Cost of Direct Materials per
pound
Direct Labor per gadget
Direct Labor Cost per
gadget
$5 per pound
18 minutes per
gadget (.30 hours)
$6 per gadget
What is the Direct Labor Rate Variance?
Enter a favorable variance as a positive number. Enter an unfavorable variance
as a negative number.
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