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

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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

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

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Answer 2

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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

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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 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