C & H Corp. uses a standard cost system, manufactured 18,000 bumper cars during 2021 using 153,000 square feet of rubber purchased at $1.05 per square foot. Production required 413 direct labor hours costing $16 per hour. The direct materials standard was 6 square feet of rubber per car, at a cost of 1.30 per square foot. The labor standard was 1.050 direct labor hours per car, at a standard cost of $16. Calculate the direct labor efficiency variance. (AQ ? SQ) ? SC = 11 Di

C & H Corp. uses a standard cost system, manufactured 18,000 bumper cars during 2021 using 153,000 square feet of rubber purchased at $1.05 per square foot. Production required 413 direct labor hours costing $16 per hour. The direct materials standard was 6 square feet of rubber per car, at a cost of 1.30 per square foot. The labor standard was 1.050 direct labor hours per car, at a standard cost of $16. Calculate the direct labor efficiency variance. (AQ ? SQ) ? SC = 11 Di

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
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ro Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2016, using 146,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 410 direct labor hours that cost $15.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $14.00 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Pro Fender's managers have been making trade-offs? Explain.