Ada Clothes Company produced 12,000 units during April. The Cutting Department used 2,300 direct labor hours at an actual rate of $13.10 per hour. The Sewing Department used 3,800 direct labor hours at an actual rate of $12.80 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.00. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Line Item Description Cutting Department Sewing Department Direct Labor Rate Variance $fill in the blank 1 $fill in the blank 3 Direct Labor Time Variance $fill in the blank 5 $fill in the blank 7 Total Direct Labor Cost Variance $fill in the blank 9 $fill in the blank 11
Ada Clothes Company produced 12,000 units during April. The Cutting Department used 2,300 direct labor hours at an actual rate of $13.10 per hour. The Sewing Department used 3,800 direct labor hours at an actual rate of $12.80 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.00. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Line Item Description Cutting Department Sewing Department Direct Labor Rate Variance $fill in the blank 1 $fill in the blank 3 Direct Labor Time Variance $fill in the blank 5 $fill in the blank 7 Total Direct Labor Cost Variance $fill in the blank 9 $fill in the blank 11
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...
Related questions
Question
Ada Clothes Company produced 12,000 units during April. The Cutting Department used 2,300 direct labor hours at an actual rate of $13.10 per hour. The Sewing Department used 3,800 direct labor hours at an actual rate of $12.80 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.00. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively.
a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Line Item Description | Cutting Department | Sewing Department |
|---|---|---|
| Direct Labor Rate Variance | $fill in the blank 1
|
$fill in the blank 3
|
| Direct Labor Time Variance | $fill in the blank 5
|
$fill in the blank 7
|
| Total Direct Labor Cost Variance | $fill in the blank 9
|
$fill in the blank 11
|
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