Labour Cost variance: The difference between the standard cost of labour estimated and the actual cost of the labour used is theLabour Cost Variance. This variance arises because of two reasons Actual man hour rate varies from the standard man hour rate and/or Actual efficiency of labour employed varies from the standard efficiency. Therefore, Labour Cost Variance is the sum of (i) Labour Rate Variance and (ii) Labour Efficiency Variance. The following formulas are used to calculate LabourCost Variance: Labour Cost Variance(LCV) = Labour Rate Variance (LRV) +Labour efficiency variance (LEV) Also, LCV= Standard Cost −Actual Cost of labour Labour Cost Variance gives a view of deviations from the set standards which can be either favorable or unfavorable. The Actual Total Direct Labour Cost

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 23, Problem 12QS

To determine

Concept Introduction:

Labour Cost variance:

The difference between the standard cost of labour estimated and the actual cost of the labour used is theLabour Cost Variance. This variance arises because of two reasons

Actual man hour rate varies from the standard man hour rate and/or

Actual efficiency of labour employed varies from the standard efficiency.

Therefore, Labour Cost Variance is the sum of (i) Labour Rate Variance and (ii) Labour Efficiency Variance.

The following formulas are used to calculate LabourCost Variance:

Labour Cost Variance(LCV) = Labour Rate Variance (LRV) +Labour efficiency variance (LEV)

Also, LCV= Standard Cost −Actual Cost of labour

Labour Cost Variance gives a view of deviations from the set standards which can be either favorable or unfavorable.

The Actual Total Direct Labour Cost

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

$ 36,000 204,000 The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Liabilities Drysdale, loan $ 50,000 10,000 Total assets $ 240,000 Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Total liabilities and capital 70,000 60,000 50,000 $ 240,000 Required: a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below.

Calculate GP ratio round answers to decimal place

What is the gross profit percentage for this period

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 23, Problem 12QS

To determine

Concept Introduction:

Labour Cost variance:

The difference between the standard cost of labour estimated and the actual cost of the labour used is theLabour Cost Variance. This variance arises because of two reasons

Actual man hour rate varies from the standard man hour rate and/or

Actual efficiency of labour employed varies from the standard efficiency.

Therefore, Labour Cost Variance is the sum of (i) Labour Rate Variance and (ii) Labour Efficiency Variance.

The following formulas are used to calculate LabourCost Variance:

Labour Cost Variance(LCV) = Labour Rate Variance (LRV) +Labour efficiency variance (LEV)

Also, LCV= Standard Cost −Actual Cost of labour

Labour Cost Variance gives a view of deviations from the set standards which can be either favorable or unfavorable.

The Actual Total Direct Labour Cost

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 23, Problem 12QS

To determine

Concept Introduction:

Labour Cost variance:

The difference between the standard cost of labour estimated and the actual cost of the labour used is theLabour Cost Variance. This variance arises because of two reasons

Actual man hour rate varies from the standard man hour rate and/or

Actual efficiency of labour employed varies from the standard efficiency.

Therefore, Labour Cost Variance is the sum of (i) Labour Rate Variance and (ii) Labour Efficiency Variance.

The following formulas are used to calculate LabourCost Variance:

Labour Cost Variance(LCV) = Labour Rate Variance (LRV) +Labour efficiency variance (LEV)

Also, LCV= Standard Cost −Actual Cost of labour

Labour Cost Variance gives a view of deviations from the set standards which can be either favorable or unfavorable.

The Actual Total Direct Labour Cost

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 23, Problem 12QS

To determine