Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business. Total Labor Variance: The variance which is used to find the variation in the actually incurred direct labor cost and the estimated cost of the direct labor. It is the sum of labor price variance and the labor quantity variance. Labor Price Variance: The difference of the rate paid to workers and rate that was supposed to be paid to the worker is called labor price variance. Labor Quantity Variance: The difference between the amount that should have been paid for the hours worked and the amount that was supposed to be paid for the amount of hours that should have been worked is called labor quantity variance. To determine: The total labor variance.

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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 25, Problem 25.6E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Labor Variance: The variance which is used to find the variation in the actually incurred direct labor cost and the estimated cost of the direct labor. It is the sum of labor price variance and the labor quantity variance.

Labor Price Variance: The difference of the rate paid to workers and rate that was supposed to be paid to the worker is called labor price variance.

Labor Quantity Variance: The difference between the amount that should have been paid for the hours worked and the amount that was supposed to be paid for the amount of hours that should have been worked is called labor quantity variance.

To determine: The total labor variance.

(b)

To determine

The labor price and quantity variances.

(c)

To determine

The labor price and quantity variances.

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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 25, Problem 25.6E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Labor Variance: The variance which is used to find the variation in the actually incurred direct labor cost and the estimated cost of the direct labor. It is the sum of labor price variance and the labor quantity variance.

Labor Price Variance: The difference of the rate paid to workers and rate that was supposed to be paid to the worker is called labor price variance.

Labor Quantity Variance: The difference between the amount that should have been paid for the hours worked and the amount that was supposed to be paid for the amount of hours that should have been worked is called labor quantity variance.

To determine: The total labor variance.

(b)

To determine

The labor price and quantity variances.

(c)

To determine

The labor price and quantity variances.

Expert Solution & Answer

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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 25, Problem 25.6E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Labor Variance: The variance which is used to find the variation in the actually incurred direct labor cost and the estimated cost of the direct labor. It is the sum of labor price variance and the labor quantity variance.

Labor Price Variance: The difference of the rate paid to workers and rate that was supposed to be paid to the worker is called labor price variance.

Labor Quantity Variance: The difference between the amount that should have been paid for the hours worked and the amount that was supposed to be paid for the amount of hours that should have been worked is called labor quantity variance.

To determine: The total labor variance.

(b)

To determine

The labor price and quantity variances.

(c)

To determine

The labor price and quantity variances.

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 25, Problem 25.6E

(a)

To determine