The following standards have been set for each test performed: Standard Hours Standard Price or Quantity 3 pounds 0.4 hours or Rate S0.75 per pound S12 per hour Dircct materials Direct labor. During March, Your Company performed 2,000 tests. •840 actual direct labor-hours were worked at a cost of $8,610. The labor rate (P) variance for March is: Enter a favorable variance as a positive number; an unfavorable variance as a negative number. ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DESCRIPTIONS.

The following standards have been set for each test performed: Standard Hours Standard Price or Quantity 3 pounds 0.4 hours or Rate S0.75 per pound S12 per hour Dircct materials Direct labor. During March, Your Company performed 2,000 tests. •840 actual direct labor-hours were worked at a cost of $8,610. The labor rate (P) variance for March is: Enter a favorable variance as a positive number; an unfavorable variance as a negative number. ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DESCRIPTIONS.

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Description: The following standards have been set for each test performed:Standard HoursStandard PriceDirect materialsDirect laboror Quantity3 pounds0.4 hoursor RateS0.75 per poundS12 per hourDuring March, Your Company performed 2,000 tests.• 840 actual direct

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
Ellis Companys labor information for September is as follows: A. Compute the standard direct labor rate per hour. B. Compute the direct labor time variance. C. Compute the standard direct labor rate if the direct labor rate variance was $2,712.30 (unfavorable).
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Use the following information to complete Brief Exercises 10-25 and 10-26: Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03 hour. During the month of April, 900,000 bottles were produced using 25,200 labor hours @ 15.00. The standard wage rate is 13.50 per hour. 10-26 Labor Rate and Efficiency Variances Refer to the information above for Tico Inc. on the previous page Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches.
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