Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances. Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories: 1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows: Direct labor rate variance = ( Actual rate – Standard rate ) × Actual hours 2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows: Direct labor efficiency variance = ( Actual hours – Standard hours ) × Standard rate 3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows: Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance Or Direct Labor cost variance = Actual Labor cost – Standard Labor Cost Requirement-1: To determine: The calculation of direct labor cost variance

Question

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Answer 1

Question

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

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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…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

Answer 2

Question

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Expert Solution & Answer

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Answer 4

Question

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Answer 6

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

Answer 7

Chapter 23, Problem 23.1TIATC

To determine

Concept Introduction:

Standard Costing System: Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.

Variances Analysis: A Variance analysis is comparing the actual and standard figures and finding the differences or variances

Direct labor variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. Direct labor cost variances are categorized into following categories:

1. Direct labor Rate variance: this variance shows the difference of standard rate and actual rate of labor. The formula to calculate this variance is as follows:

$Direct labor rate variance = (Actual rate – Standard rate) \times Actual hours$

2. Direct labor efficiency variance: this variance shows the difference of standard usage and actual usage of labor. The formula to calculate this variance is as follows:

$Direct labor efficiency variance = (Actual hours – Standard hours) \times Standard rate$

3. Direct labor cost variance: this variance shows the difference of standard cost and actual cost of labor. The formula to calculate this variance is as follows:

$Direct labor cost variance = Direct labor rate variance + Direct labor efficiency variance$

Or

Direct Labor cost variance = Actual Labor cost – Standard Labor Cost

Requirement-1:

To determine: The calculation of direct labor cost variance

Answer 8

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

Answer 9

To determine

Requirement -2:

To explain: Direct labor cost variance and its calculation

Answer 10

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

Answer 11

To determine

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

Answer 12

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

Answer 13

To determine

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

Answer 14

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Answer 15

To determine

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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Requirement -2:

To explain: Direct labor cost variance and its calculation

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

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Chapter 23 Solutions

Concept explainers

Videos

Requirement -2: To explain: Direct labor cost variance and its calculation

Requirement -3: To explain: Direct labor efficiency variance and its calculation

Requirement -4: To explain: Unfavorable Direct labor cost variance and the measures to control this variance

Requirement -5: To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance

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Chapter 23 Solutions

Requirement -2:

To explain: Direct labor cost variance and its calculation

Requirement -3:

To explain: Direct labor efficiency variance and its calculation

Requirement -4:

To explain: Unfavorable Direct labor cost variance and the measures to control this variance

Requirement -5:

To explain: Unfavorable Direct labor efficiency variance and the measures to control this variance