Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Textbook Question
Chapter 10, Problem 25BEA
Use the following information to complete Brief Exercises 10-25 and 10-26:
Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03 hour. During the month of April, 900,000 bottles were produced using 25,200 labor hours @ $15.00. The standard wage rate is $13.50 per hour.
10-25 Total Labor Variance
Refer to the information for Tico Inc. on the previous page.
Required:
Calculate the total variance for production labor for the month of April.
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Steelwater Corporation produces steel water tanks. Each water tank has a
standard labor requirement of 2 hours. The standard direct labor costs
assigned to each tank is $30. During the most recent month, 500 water
tanks were produced using 1,100 labor hours at the wage rate of $13 per
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Which of the following should appear in journal entries to record the use
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O Debit to Direct Labor Efficiency Variance for 3,000
O Credit to Wages Payable (or Cash) for 16,500
O Debit to Work-in-Process for 15,000
O Credit to Direct Labor Rate Variance for 18,700
b) Fan Trading produces plastic bottles. Each bottle has a standard labor requirement
of 0.025 hours. During the month of April, 750,000 bottles were produced using
21,000 labor hours @ RM10.00. The standard wage rate is RM 9.50 per hour.
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i. Calculate the total variance for aluminium for the month of April.
ii. Calculate the labor rate and efficiency variances.
Steelwater Corporation produces steel water tanks. Each water tank has a
standard labor requirement of 2 hours. The standard direct labor costs
assigned to each tank is $30. During the most recent month, 500 water
tanks were produced using 1,100 labor hours at the wage rate of $13 per
hour.
What is the direct labor rate variance?
O $1,500 U
$18,700 U
O $18,700 F
O $2,200 F
Chapter 10 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 10 - Discuss the dirrerence between budgets and...Ch. 10 - Describe the relationship that unit standards have...Ch. 10 - Why is historical experience often a poor basis...Ch. 10 - Prob. 4DQCh. 10 - Explain why standard costing systems adopted.Ch. 10 - How does standard costing improve the control...Ch. 10 - Discuss the differences among actual costing,...Ch. 10 - Prob. 8DQCh. 10 - The budget variance for variable production costs...Ch. 10 - When should a standard cost variance be...
Ch. 10 - What are control limits, and how are they set?Ch. 10 - Explain why the materials price variance is often...Ch. 10 - The materials usage variance is always the...Ch. 10 - The labor rate variance is never controllable. Do...Ch. 10 - Prob. 15DQCh. 10 - What is kaizen costing? On which part of the value...Ch. 10 - What is target costing? 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The unit...Ch. 10 - The Lubbock plant of Morrils Small Motor Division...Ch. 10 - Moleno Company produces a single product and uses...Ch. 10 - The Lubbock plant of Morrils Small Motor Division...Ch. 10 - Extrim Company produces monitors. Extrims plant in...Ch. 10 - Lynwood Company produces surge protectors. To help...Ch. 10 - Shumaker Company manufactures a line of high-top...Ch. 10 - Paul Golding and his wife, Nancy, established...Ch. 10 - Prob. 79CCh. 10 - Prob. 1MTCCh. 10 - The Two Cost Systems Sacred Heart Hospital (SHH)...Ch. 10 - Prob. 3MTCCh. 10 - Prob. 4MTCCh. 10 - The Two Cost Systems Sacred Heart Hospital (SHH)...Ch. 10 - Prob. 6MTCCh. 10 - Prob. 7MTCCh. 10 - Prob. 8MTCCh. 10 - Prob. 9MTCCh. 10 - Sacred Heart Hospital (SHH) faces skyrocketing...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY