Direct Labor Variances The direct labor variance is the deviation of actual cost of labor from the standard cost of labor incurred in the actual production. The standard cost of labor is the anticipated budgeted cost that can be ideally incurred for the production of any unit product. The direct labor costs swings proportional to the level of production activities. Direct labor rate and efficiency variances for the period and classify them as favorable and unfavorable.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 21, Problem 11QS

To determine

Direct Labor Variances

The direct labor variance is the deviation of actual cost of labor from the standard cost of labor incurred in the actual production. The standard cost of labor is the anticipated budgeted cost that can be ideally incurred for the production of any unit product. The direct labor costs swings proportional to the level of production activities.

Direct labor rate and efficiency variances for the period and classify them as favorable and unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Respond to M.N. Post These different organizations work in tandem as repositories of knowledge, guidance, standards, and investigatory authority in matters of accounting. The FASB’s (Financial Accounting Standards Board) primary goal is to provide, in one place, all the authoritative literature and information for accounting past, present, and potential future subjects. The AICP (American Institute of Certified Public Accountants) is an organization that tries to inform, guide, and maintain standards for publishing to members for best practice. The SEC (Securities and Exchange Commission) and FTC (Federal Trade Commission) conduct investigations and audits into organizations to ensure that the law is adhered to. These organizations maintain continuity between standards, information that is published for CPAs, and the authoritative bodies that investigate and audit companies. The impacts that these organizations have on financial statements are varied. The FASB sets the standards…

What is its cash conversion cycle?

What is the gross profit for this accounting question?

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 21, Problem 11QS

To determine

Direct Labor Variances

The direct labor variance is the deviation of actual cost of labor from the standard cost of labor incurred in the actual production. The standard cost of labor is the anticipated budgeted cost that can be ideally incurred for the production of any unit product. The direct labor costs swings proportional to the level of production activities.

Direct labor rate and efficiency variances for the period and classify them as favorable and unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 21, Problem 11QS

To determine

Direct Labor Variances

The direct labor variance is the deviation of actual cost of labor from the standard cost of labor incurred in the actual production. The standard cost of labor is the anticipated budgeted cost that can be ideally incurred for the production of any unit product. The direct labor costs swings proportional to the level of production activities.

Direct labor rate and efficiency variances for the period and classify them as favorable and unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 21, Problem 11QS

To determine