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. To determine: The Actual Total Direct Labour Cost

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Answer 1

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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.

To determine: The Actual Total Direct Labour Cost

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E3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method) [LO 3-2] Vista Vacuum Company has the following production Information for the month of March. All materials are added at the beginning of the manufacturing process. Units . • Beginning Inventory of 3,500 units that are 100 percent complete for materials and 28 percent complete for conversion. 14,600 units started during the period. Ending Inventory of 4,200 units that are 14 percent complete for conversion. Manufacturing Costs Beginning Inventory was $20,500 ($10,100 materials and $10,400 conversion costs). Costs added during the month were $28,400 for materials and $51,500 for conversion ($26.700 labor and $24,800 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the…

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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.

To determine: The Actual Total Direct Labour Cost

Expert Solution & Answer

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Check out a sample textbook solution

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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.

To determine: 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