Direct labor variances: The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows: Labor rate variance. Labor time variance. To indicate: The two variances between the actual cost, and standard cost for direct labor.

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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 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

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Information pertaining to Noskey Corporation’s sales revenue follows: November 20X1 (Actual) December 20X1 (Budgeted) January 20X2 (Budgeted)Cash sales $ 115,000 $ 121,000 $ 74,000Credit sales 282,000 409,000 208,000Total sales $ 397,000 $ 530,000 $ 282,000Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in…

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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 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

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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 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

Expert Solution & Answer

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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 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

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Answer 5

Chapter 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

Answer 6

Chapter 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

Answer 7

Chapter 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

Labor rate variance.

Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

Answer 8

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

Answer 9

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 22 - What are the basic objectives in the use of...Ch. 22 - What is meant by reporting by the principle of...Ch. 22 - Prob. 3DQ Ch. 22 - The materials cost variance report for Nickols...Ch. 22 - Prob. 5DQ Ch. 22 - Prob. 6DQ Ch. 22 - Prob. 7DQ Ch. 22 - A. Describe the two variances between the actual...Ch. 22 - If variances are recorded in the accounts at the...Ch. 22 - Briefly explain why firms might use non financial...

Solution Summary: The author explains the difference between the actual labor cost in the production and the standard labor costs for actual production.

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To identify: The person, who generally has control over the direct labor cost variances.

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