Vermont Inc. has provided the following data concerning one of the products in its standard cost system. Standard Quantity or Hours per Unit of Output 0.20 hours Inputs Direct labor The company has reported the following actual results for the product for May: Actual output 8,800 units Actual direct labor-hours. 1,610 hours Actual direct labor rate. S 23.30 per hour The labor rate variance for the month is closest to: Standard Price or Rate $21.70 per hour $2,576 U $2,816 U O $2,816 F O $2,576 F

Vermont Inc. has provided the following data concerning one of the products in its standard cost system. Standard Quantity or Hours per Unit of Output 0.20 hours Inputs Direct labor The company has reported the following actual results for the product for May: Actual output 8,800 units Actual direct labor-hours. 1,610 hours Actual direct labor rate. S 23.30 per hour The labor rate variance for the month is closest to: Standard Price or Rate $21.70 per hour $2,576 U $2,816 U O $2,816 F O $2,576 F

Name: Vermont Inc. has provided the following data concerning one of the pr
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Description: Vermont Inc. has provided the following data concerning one of the products in its standard cost system.Standard Quantity or Hoursper Unit of Output0.20 hoursInputsDirect laborThe company has reported the following actual results for the product for

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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

Vermont Inc. has provided the following data concerning one of the products in its standard cost system.
Standard Quantity or Hours
per Unit of Output
0.20 hours
Inputs
Direct labor
The company has reported the following actual results for the product for May:
Actual output
Actual direct labor-hours
Actual direct labor rate.
The labor rate variance for the month is closest to:
$2,576 U
O $2,816 U
O $2,816 F
Standard Price or Rate
$21.70 per hour
O $2,576 F
8,800 units
1,610 hours
S 23.30 per hour

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